Form-CMP-08-for-Composition-Scheme

Content Table

Introduction

What is a Form GST CMP-08 ?

Who can file Form CMP 08 ?

GST Tax Rate for Composition Dealer under GST

Due Date, Interest and Penalty

Steps to File Form GST CMP-08

Introduction

Form CMP-08 under GST was introduced vide Notification No. 20/2019 dated 23rd April, 2019. Further, amendments were made to CGST Rules by adding Rule 62 regarding returns to be filed by a Composition dealer.

Amended rule states that every composition dealer must make payment of tax in Form GST CMP-08 and file an annual return in Form GSTR-4.

Initially, composition dealer were required to file GSTR-4 on a quarterly basis.

Know everything about Composition Scheme under GST !

What is a Form CMP-08 ?

Form GST CMP-08 is a statement cum challan that requires every composition dealer taxpayer to declare details of self assessed tax payable for a particular quarter.

This form is applicable from 1st April, 2019 and replaces Form GSTR 4 that was earlier required to be filed by every composition dealer under GST.

However, revised Form GSTR 4 is still required to be filed on an annual basis by such composition dealer tax payer.

Who can file Form CMP-08 

form cmp-08 under gst

Form CMP-08 in GST is required to be filed by every taxpayer who has registered themselves as composition dealer by filing either Form GST CMP-02 or Form GST Reg -1.

As per section 10, a taxpayer can opt for registration under the composition if his aggregate turnover in GST is up to –

  • Rs. 1.5 crores in case of supplier of goods being manufacturer or retailer
  • Rs. 50 lakhs in case of supplier of services who fulfils conditions as specified in Notification No. 2/2019 – Central Tax (Rate) dated 7th March, 2019
  • Rs. 1.5 crores in case of restaurant service providers

Note: 

GST slabs for Restaurants are now revised. To learn more on GST on Restaurants services, click on the link provided.

Exceptions – The following mentioned taxpayers cannot opt for composition scheme and hence cannot file Form GST CMP-02

gst return form

Exceptions for Composition Scheme

  • A manufacturer of ice cream, pan masala, tobacco and tobacco substitutes
  • Engaged in inter-state supplies
  • A non-resident taxable person
  • A casual taxable person
  • Engaged in e-Commerce supply of goods
  • Making supply of non-taxable goods

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GST Tax Rate for Composition Dealer under GST

Type of Taxpayer

Aggregate

 Annual Turnover

GST Tax rate

Manufacturer or retailer

Up to Rs. 1.5 crores

1 %

Restaurant Service Providers

Up to Rs. 1.5 crores

5%

Other Service Providers

Up to Rs. 50 lakhs

6%

Due Date, Interest and Penalty:

CMP-08 Form filing

Form GST CMP-08 is a quarterly return to be filed by 18th of the month succeeding the end quarter for which the GST return is to be filed.

Thus, due date for April to June quarter will be 18th July.

In case of delayed filing, a taxpayer shall be liable to pay late fees of Rs. 200 per day (CGST – Rs. 100 and SGST – Rs. 100) subject to a maximum limit of Rs. 5000.

Further, in addition to late fees, the taxpayer is also required to pay interest @ 18% per annum in the event of failure to make payment within the prescribed due date. Such interest is to be calculated on the amount of tax payable.

Form GST CMP– 08 Details:

The following details are to be updated in Form CMP-08 :

1. GSTIN
  • The composition dealer GSTIN will be updated in this section.
2. Basic Details

Based on GSTIN of the composition dealer, basic details as mentioned below will be auto populated by the GSTN –

  • Legal Name
  • Trade Name
  • Period (including Financial Year)
3. Summary of Self Assessed Tax Liability

This table requires a taxpayer to give the following details

  • Outward supplies (including exempt supplies)
  • Inward supplies attracting reverse charge under GST including import of services.  
  • Tax Payable on the supplies mentioned above
  • Interest payable in case of delayed filing
  • To check your RCM applicability under GST, click under link provided

Any adjustments with respect to advances, debit notes, credit notes under GST or amendments to self-assessed tax liability shall be made here.

Important Notes:

  • Negative values may be reported in this Form. Such negative values shall be carried forward and adjusted with tax liability in next period.
  • If there is no tax liability, the composition dealer has to file NIL GST returns.
  • In case of NIL tax, GSTN has given an option to directly file NIL return without going through entire filing process. A Nil return is to be filed if there is outward liability during the period, no inward supplies attracting reverse charge.
  • Interest @ 18% per annum shall be payable in case of delayed filing on tax amount.
  • GSTR 1 return filing captures all the outward supplies details of business made in a month. It is the responsibility of the supplier to accurately file his GSTR1 so that his recipient can easily claim GST Input Tax Credit for that transaction.
4. Verification
  • The taxpayer has to verify that details provided by him are true and correct and no information is concealed.
composition dealer under gst

Steps to File Form GST CMP-08:

One important point to be considered here is that no Offline Utility is available for filing Form GST CMP-08. One has to use online filing option only where figures are to be manually updated by the taxpayer.

step 1

Select the period for which Form CMP 08 is to filed

step 2

Update the details of tax liability and determine the total tax liability to be paid by the taxpayer

step 3

After the details are updated, Save the data.

step 4

Once the data is submitted, “Preview draft” of the Form. If the draft is ok, then click on “Proceed to File”.

step 5

Total tax liability payable will be displayed here. If there is sufficient balance in cash ledger, click on “File GST CMP-08”. In absence of sufficient balance in cash ledger, click on “Create Challan” and pay tax liability accordingly.

step 6

After tax liability balance is available in cash ledger, click on “File GST CMP-08” after verifying the details

step 7

Form GST CMP-08 can be filed either through EVC or DSC option by the taxpayer.

step 8

After filing of Form GST CMP-08, Acknowledgement Receipt Number (ARN) will be generated and a message and email for the same is sent to registered mobile number and registered email id of the taxpayer.


CA Sugandh Jain Parmar

About the author

CA Sugandh Jain Parmar is a practicing Chartered Accountant with an experience of over 4 years.

Having associated with one of the Big 4 audit firms in India for 2 years, she has knowledge on internal audit and internal financial controls.

Currently, her domain specialization includes providing GST consultancy and advisory services.

Her articles focus on balancing information and in-depth information on GST related topics.

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