CMP 08 (Composition Dealer)

CMP-08 is a form used by taxpayers who have opted for the Composition Scheme under the Goods and Services Tax (GST) regime in India. The Composition Scheme is designed to simplify the GST compliance process for small taxpayers by allowing them to pay GST at a fixed rate on their turnover, rather than the regular rates applicable to their goods or services.

Key Points about CMP-08:

1. Purpose:

   • CMP-08 is used to declare the summary of self-assessed tax payable by composition taxpayers for a specific quarter.
   • It replaces the previous form GSTR-4, which was an annual return, now reserved only for annual filing while CMP-08 is filed quarterly.

2. Eligibility:

   • Taxpayers registered under the Composition Scheme, which includes small businesses with a turnover up to Rs. 1.5 crores in the previous financial year (or Rs. 75 lakhs in specific states).
   • This includes manufacturers, traders, and certain service providers who meet the eligibility criteria.

3. Filing Frequency:

   • CMP-08 is filed quarterly, meaning it needs to be submitted four times a year.

4. Due Date:

   • The due date for filing CMP-08 is the 18th of the month following the end of the quarter.
   • For example, for the quarter April-June, the due date is 18th July.

5. Contents of CMP-08:

   • The form includes details such as:
     • GSTIN (Goods and Services Tax Identification Number)
     • Legal name and trade name (if any) of the taxpayer
     • Aggregate turnover for the quarter
     • Taxable outward supplies
     • Inward supplies attracting reverse charge
     • Details of tax paid (central tax, state tax/union territory tax, and integrated tax)

6. Tax Payment:

   • The tax is payable at a fixed rate on the turnover declared in CMP-08. The rates are as follows:
     • 0.5% of the turnover in the state/union territory for manufacturers.
     • 1% (0.5% CGST + 0.5% SGST) of the turnover in the state/union territory for traders.
     • 6% (3% CGST + 3% SGST) of the turnover for service providers under the special composition scheme introduced in the financial year 2019-20.

7. Penalty for Late Filing:

   • Late filing of CMP-08 attracts a late fee of Rs. 200 per day of delay (Rs. 100 under CGST and Rs. 100 under SGST) subject to a maximum of Rs. 5,000.
   • Interest at 18% per annum is also applicable on the outstanding tax amount.

8. Annual Return:

   • In addition to the quarterly CMP-08, composition taxpayers are required to file an annual return in Form GSTR-4 by 30th April following the end of the financial year.

Filing CMP-08:

Steps to File CMP-08 Online:

1. Login to GST Portal:

   • Visit the GST portal (https://www.gst.gov.in) and log in using your credentials.

2. Navigate to CMP-08:

   • Go to ‘Services’ > ‘Returns’ > ‘Returns Dashboard’.
   • Select the financial year and return filing period (quarter).
   • Select ‘CMP-08’ and click on ‘Prepare Online’.

3. Fill in the Details:

   • Enter the turnover details and taxable value.
   • Enter the tax liability based on the composition rates applicable.

4. Preview and Submit:

   • Preview the form and verify the details.
   • Click on ‘Submit’ to file the form.

5. Make Payment:

   • Pay the tax liability using the payment options available on the GST portal.
   • Generate the challan and make the payment.

6. File and Download:

   • After payment, file the return by verifying it with an OTP or digital signature.
   • Download the filed return for your records.

By staying compliant with CMP-08 filing requirements, composition dealers can ensure they are adhering to GST regulations and avoiding any penalties or interest charges due to late filing or payment.

• A dealer whose aggregate turnover in the preceding financial year did not exceed ₹1.5 crores (₹75 lakhs for special category states). Manufacturers of goods (excluding certain notified goods). Dealers engaged in the supply of food and drinks for human consumption. Traders or any other supplier eligible for the composition scheme.
• Service providers (except those supplying food and drinks for human consumption). Businesses making inter-state supplies. Suppliers of goods through an e-commerce operator. Manufacturers of notified goods such as ice cream, pan masala, and tobacco.
• CMP-08 is a quarterly self-assessment return-cum-challan that composition dealers must file. It reports the summary of outward supplies, tax payable, and tax paid during the quarter. The due date for filing CMP-08 is the 18th of the month following the quarter.
• Manufacturers: 1% of turnover. Traders: 1% of turnover. Restaurants and service providers eligible for the composition scheme: 5% of turnover.
• Composition dealers cannot claim input tax credit (ITC). They cannot issue tax invoices; instead, they issue a bill of supply. They must mention "composition taxable person" on every notice or signboard displayed at their principal and additional places of business. Composition dealers must pay tax at normal rates for transactions not covered under the composition scheme.

Documents Required:

1. GST Registration Certificate:

   • Your GSTIN (Goods and Services Tax Identification Number) issued by the GST authorities.

2. Previous GST Returns:

   • Details of the previously filed GST returns, including GSTR-4 (annual return for composition dealers) if applicable.

3. Business Documents:

   • Invoices or bills of supply issued during the quarter.
   • Purchase invoices for inward supplies, especially those attracting reverse charge.

4. Bank Statements:

   • Bank statements for the relevant quarter to reconcile the turnover and payments made.

5. Books of Accounts:

   • Accurate records of sales and purchase ledgers.
   • Details of turnover for the quarter.

Details Required:

1. Basic Details:

   • Legal name of the business and trade name (if any).
   • Address of the principal place of business.

2. Turnover Details:

   • Aggregate turnover for the quarter.
   • Taxable turnover for the quarter.
   • Turnover of exempt supplies (if any).

3. Tax Details:

   • Details of outward supplies (sales) made during the quarter.
   • Details of inward supplies (purchases) attracting reverse charge.
   • Tax liability calculated at the applicable composition rates:
     • Manufacturers: 0.5% of the turnover in the state/union territory.
     • Traders: 1% (0.5% CGST + 0.5% SGST) of the turnover in the state/union territory.
     • Service Providers (under special scheme): 6% (3% CGST + 3% SGST) of the turnover.

4. Payment Details:

   • Total tax liability for the quarter.
   • Payment details including challan details if payment has been made through challan.

5. Interest and Late Fee (if applicable):

   • Details of interest payable for late payment.
   • Details of any late fees applicable for late filing of CMP-08.