FORM CMP-08: Comprehensive Guide to Filing CMP-08 the Quarterly Statement for Composition Scheme Taxpayers

For businesses operating under the simplified Composition Scheme within the Goods and Services Tax (GST) framework in India, compliance is streamlined with fewer returns. Instead of monthly returns, composition scheme taxpayers are required to file a quarterly statement and pay their tax liability by Filing CMP-08. This comprehensive article will guide you through everything you need to know about FORM CMP-08, explaining its purpose, who needs to file it, the applicable due dates, the details required, the online filing process, and the consequences of delayed submission.

What is FORM CMP-08?

FORM CMP-08 is a quarterly statement cum challan used by taxpayers registered under the Composition Scheme under GST. It is not a full return like GSTR-1 or GSTR-3B but serves as a summary of the taxpayer’s self-assessed tax liability for a quarter and facilitates the payment of this tax. It is a mandatory compliance requirement for all active composition scheme taxpayers, replacing the erstwhile quarterly GSTR-4 return which is now an annual return.

Elaborating on Who Should File FORM CMP-08: Understanding the Composition Scheme

To fully understand who files FORM CMP-08, it’s important to be clear about the Composition Scheme itself. This scheme is an option for small taxpayers whose aggregate turnover in the preceding financial year did not exceed a certain threshold.

• Manufacturers (excluding certain specified goods) and Traders whose aggregate turnover in the preceding financial year was up to ₹1.5 crore (₹75 lakh for special category states).
  • Example: A small furniture manufacturer in Punjab with an aggregate turnover of ₹1.2 crore in the previous year, who has validly opted for the composition scheme, must file FORM CMP-08 every quarter.
• Restaurants (not serving alcohol) whose aggregate turnover was up to ₹1.5 crore.
  • Example: A standalone family restaurant in Tamil Nadu with an aggregate turnover of ₹70 lakh in the previous year, opting for composition, needs to file CMP-08 quarterly.
• Suppliers of Services or Mixed Suppliers whose aggregate turnover in the preceding financial year was up to ₹50 lakh (subject to conditions).
  • Example: A graphic designer providing design services with an aggregate turnover of ₹40 lakh in the previous year, opting for the composition scheme for services, must file CMP-08 every quarter.

Every registered taxpayer who has validly opted into or remained under the Composition Scheme for any period within a financial year is required to file FORM CMP-08 for each quarter of that period.

Due Dates for Filing FORM CMP-08

FORM CMP-08 must be filed on a quarterly basis. The due date is the 18th day of the month following the end of the quarter.

Here are the due dates for the financial year:

• Quarter 1 (April to June): Due by 18th July
• Quarter 2 (July to September): Due by 18th October
• Quarter 3 (October to December): Due by 18th January
• Quarter 4 (January to March): Due by 18th April

For the current financial year 2025-26, the CMP-08 for the quarter April to June 2025 will be due by July 18, 2025.

It is crucial for composition scheme taxpayers to adhere to these quarterly deadlines to maintain compliance and avoid penalties.

Expanding on Details to be Furnished in FORM CMP-08: Turnover Calculation and Reporting

The core of FORM CMP-08 revolves around declaring your turnover for the quarter and calculating the tax payable. It’s vital to use the correct ‘Turnover for Composition Levy’ for calculation in CMP-08, distinct from ‘Aggregate Turnover’ used for scheme eligibility.

• Aggregate Turnover (for Eligibility): Includes the total value of all your outward supplies (taxable, exempt, and nil-rated), inter-state supplies, exports, and supplies made on behalf of others, calculated on an All India basis.
• Turnover for Composition Levy (for CMP-08 – Table 3): This is the figure used to calculate your tax liability for the quarter. It includes:
  • Outward supplies (other than inward supplies liable to reverse charge): This is your regular sales turnover during the quarter.
  • Inward supplies liable to reverse charge: You must also report the value of any purchases or services received where you, as the recipient, are liable to pay tax under the reverse charge mechanism as per Section 9(3) or 9(4) of the CGST Act, 2017 (e.g., services from a Goods Transport Agency – GTA, advocate services).
  • Example: Mr. Anil, a composition trader, had total sales (outward supplies) of ₹8,00,000 during the quarter April to June 2025. He also received services from a GTA worth ₹10,000 on which he is liable to pay tax under reverse charge. His total “Value of supplies (other than inward supplies liable to reverse charge)” is ₹8,00,000. His total “inward supplies liable to reverse charge” is ₹10,000. The total “Value of supplies (Table 3 total)” for the quarter for tax calculation is ₹8,10,000.
• Tax Calculation: The GST portal automatically calculates the tax payable once you enter the “Value of supplies” based on your registered composition rate:
  • Manufacturers & Traders: 1% (0.5% CGST + 0.5% SGST/UTGST) of Turnover for Composition Levy.
  • Restaurants (not serving alcohol): 5% (2.5% CGST + 2.5% SGST/UTGST) of Turnover for Composition Levy.
  • Service Providers/Mixed Suppliers (under the ₹50 lakh scheme): 6% (3% CGST + 3% SGST/UTGST) of Turnover for Composition Levy.
  • Example: If Mr. Anil is a trader paying tax at 1%, his tax payable for the quarter on ₹8,10,000 will be ₹8,100 (₹4,050 CGST and ₹4,050 SGST). This is the amount that needs to be paid in cash.
• Interest Paid (if any): If there is a delay in payment of tax from a previous quarter, any interest paid needs to be declared in a separate field.

Providing More Detail on How to File FORM CMP-08 Online: Step-by-Step Guide

FORM CMP-08 must be filed electronically through the GST portal. Here’s a detailed step-by-step guide:

1. Visit the GST Portal: Go to the official GST portal: www.gst.gov.in.
2. Login: Enter your valid username and password to log in to your GST account as a composition scheme taxpayer.
3. Go to Returns Dashboard: Once logged in, go to Services > Returns > Returns Dashboard.
4. Select Financial Year and Return Filing Period: Choose the relevant Financial Year and select the specific quarter for which you are filing the statement from the dropdown menus. Click Search.
5. Click on Prepare Online: Under the FORM CMP-08 (Statement for payment of self-assessed tax) section, click on the Prepare Online button.
6. GSTR-4A Link (Information): You might see a link to FORM GSTR-4A (auto-drafted). This form auto-populates details of inward supplies from registered suppliers based on their GSTR-1/GSTR-5 filings. While this data is for your information and can help in reconciling inward supplies, the tax calculation in CMP-08 is based on your self-declared values.
7. Fill Table 3: Enter the consolidated “Value of supplies (other than inward supplies liable to reverse charge)” and “inward supplies liable to reverse charge” for the quarter in Table 3. The portal will automatically calculate the tax payable.
8. Declare Interest (if any): If applicable, enter the amount of interest paid on delayed tax payments from previous periods.
9. Save: Click on the ‘SAVE’ button to save the details entered.
10. Proceed to Payment: Click on ‘Proceed to File’. The system will show your calculated tax liability. You can then proceed to make the tax payment using the ‘Create Challan’ option or utilize the balance in your electronic cash ledger.
11. File the Statement: Once the tax payment is confirmed and reflects in your electronic cash ledger (or if your cash ledger balance was sufficient), click on ‘Proceed to File’ and then file the FORM CMP-08 using either Electronic Verification Code (EVC) generated through OTP on your registered mobile number and email ID or a Digital Signature Certificate (DSC) if applicable (DSC is mandatory for companies and LLPs).

Expanding on Payment of Tax through CMP-08: The Electronic Cash Ledger

Payment of tax under the Composition Scheme, as determined and declared in FORM CMP-08, is strictly a cash payment. You cannot utilize any Input Tax Credit (ITC) balance available in your electronic credit ledger to offset this tax liability. The entire tax due must be paid using the electronic cash ledger.

• Electronic Cash Ledger: This ledger on the GST portal reflects the cash deposited by the taxpayer.
• Generating Challan (GST PMT-06): If your electronic cash ledger does not have sufficient balance, you need to generate a challan for payment. Go to Services > Payments > Create Challan. Select the tax heads (CGST, SGST/UTGST, IGST, Cess, Interest, Penalty, Others) you need to deposit funds under. For CMP-08 tax payment, you’ll typically deposit under CGST and SGST/UTGST (or IGST if paying reverse charge on inter-state inward supply, though most composition taxpayers are restricted from inter-state outward supplies).
• Payment Modes: You can make the challan payment online using Net Banking, Credit/Debit Card, or through NEFT/RTGS. For deposits up to ₹10,000 per challan per tax period, you can also make over-the-counter payments (cash, cheque, or DD) at authorized banks.
• Utilizing Cash Ledger Balance: Once the funds are successfully deposited and credited to your electronic cash ledger, you can use this balance to pay the tax liability shown in CMP-08 during the filing process.

Elaborating on Late Filing Penalty for FORM CMP-08: The Daily Cost of Delay

Failure to file FORM CMP-08 by the due date (18th of the month following the quarter) attracts a late fee as per the GST law. The late fee is ₹50 per day of delay. This is broken down as:

• ₹25 per day under the Central Goods and Services Tax Act (CGST)
• ₹25 per day under the State Goods and Services Tax Act (SGST) or Union Territory Goods and Services Tax Act (UTGST)

A critical point to understand is that for FORM CMP-08, there is currently no specified maximum cap on this daily late fee. This means the penalty continues to accrue at ₹50 per day for every single day of delay until the statement is successfully filed. While the practical limitation is the period of active registration within the quarter, theoretically, this can accumulate significantly if filing is postponed for a long duration.

Furthermore, if the tax liability declared in CMP-08 is not paid by the due date, interest at the rate of 18% per annum is applicable on the delayed payment of the tax amount. This interest is calculated from the day immediately following the due date of payment until the date the tax is actually paid.

Importance of Filing FORM CMP-08 Correctly and on Time

Timely and accurate filing of FORM CMP-08 is not just a formality; it’s crucial for composition scheme taxpayers for several vital reasons:

• Compliance with GST Laws: It is a mandatory quarterly compliance requirement under the GST Act for all active composition scheme taxpayers. Non-compliance can lead to legal consequences.
• Avoidance of Significant Late Fees and Interest: As highlighted, the daily late fee for CMP-08 has no specified maximum cap, making timely filing essential to avoid substantial penalties. Interest on delayed tax payment also adds to the financial burden.
• Smooth GSTR-4 Filing: The total tax paid and turnover declared across the four quarterly CMP-08 statements directly impact the annual GSTR-4 return. Accurate and timely filing of CMP-08 ensures that the data flowing into your annual return is correct, making the GSTR-4 filing process smoother and reducing the chances of discrepancies that could lead to notices.
• Maintaining Active Status: Regular filing of CMP-08 confirms your active status under the Composition Scheme and helps avoid potential issues with your GST registration.
• Tax Payment Accountability: CMP-08 serves as a declaration of your self-assessed tax liability and ensures that the quarterly tax payment is made and accounted for.

Further Clarifying the Relationship with GSTR-4: Annual Consolidation

FORM CMP-08 and the annual GSTR-4 are intricately linked for composition scheme taxpayers. CMP-08 acts as the mechanism for quarterly declaration of turnover and payment of tax, while GSTR-4 is the consolidated annual return that provides a complete picture of the entire financial year’s transactions and tax payments for the composition scheme taxpayer.

• The total “Value of supplies for Composition Levy” declared across the four quarterly CMP-08 statements during a financial year forms a significant component of the total annual turnover reported in the annual GSTR-4.
• The total tax paid through the four quarterly CMP-08 challans/statements is consolidated and reported in the relevant table of the annual GSTR-4 return. The GST portal often auto-populates this figure based on your filed CMP-08s.

Therefore, accurate and timely filing of each quarterly CMP-08 is essential for the correct and smooth filing of the annual GSTR-4. Any errors or delays in CMP-08 can lead to discrepancies that need to be addressed during the GSTR-4 filing, potentially causing delays or requiring clarifications.

Filing Nil FORM CMP-08

It is a mandatory requirement under GST for composition scheme taxpayers to file FORM CMP-08 even if there was no turnover (neither outward supplies nor inward supplies liable to reverse charge) during a particular quarter. In such cases, you are required to file a ‘Nil’ statement.

• How to File Nil CMP-08: The process is the same as filing a regular CMP-08 online. You will simply enter ‘0’ in the table for “Value of supplies” and proceed to file the statement.
• Importance of Nil Filing: Filing a ‘Nil’ CMP-08 is crucial because failing to file it also attracts the daily late fee of ₹50 per day. Filing a nil return informs the tax authorities that there were no transactions requiring tax payment under the composition scheme for that specific quarter, ensuring you remain compliant.

Common Errors to Avoid While Filing FORM CMP-08

To help composition scheme taxpayers file accurately and avoid issues, here are some common errors to be mindful of:

• Miscalculation of Turnover: Carefully calculate the “Value of supplies for Composition Levy” by including both outward supplies and inward supplies liable to reverse charge. Do not confuse this with your total Aggregate Turnover.
• Incorrect Composition Rate: Ensure you are applying the correct composition rate based on your business type (manufacturer, trader, restaurant, service provider/mixed supplier).
• Attempting to Use ITC: Remember that tax under the composition scheme must be paid entirely through the electronic cash ledger. Do not attempt to utilize Input Tax Credit from your electronic credit ledger.
• Ignoring the Due Date: The 18th of the month following the quarter is a strict deadline. Plan to file well in advance to avoid the daily late fee, which has no specified maximum cap.
• Not Filing Nil Returns: Even if you have no business activity in a quarter, filing a ‘Nil’ CMP-08 is mandatory to avoid penalties.
• Errors in Reporting Reverse Charge Supplies: Ensure the value of inward supplies liable to reverse charge is correctly reported, as tax on these also needs to be paid at the applicable composition rate.

Key Takeaways

• FORM CMP-08 is a mandatory quarterly statement cum challan for all registered Composition Scheme taxpayers in India.
• It is used for declaring quarterly turnover and paying the applicable GST tax liability.
• The due date for filing is the 18th day of the month following the end of the quarter.
• Filing is done online on the GST portal.
• Tax under the composition scheme must be paid using the electronic cash ledger only; Input Tax Credit cannot be utilized.
• Late filing attracts a daily late fee of ₹50 with no specified maximum cap, plus interest at 18% on delayed tax payment.
• Even with no turnover (Nil return), CMP-08 must be filed to avoid penalties.
• The information declared and tax paid in CMP-08 are consolidated in the annual GSTR-4 return.

Understanding and meticulously complying with the requirements for filing FORM CMP-08 is vital for businesses operating under the Composition Scheme. Timely and accurate filing ensures compliance, avoids significant penalties and interest, and simplifies the annual return process. Always refer to the latest updates and notifications from the GST department for any changes in the rules and regulations regarding the Composition Scheme and CMP-08.