CMP-08: The Quarterly Statement for Composition Scheme Taxpayers

Under the GST composition scheme, small taxpayers pay tax at a flat rate and enjoy a simplified compliance mechanism. Instead of regular GSTR-1 and GSTR-3B, composition dealers file a single quarterly statement—CMP-08—to declare their tax liability. In this blog, we’ll cover everything you need to know about CMP-08: who needs to file, what it contains, due dates, how to file, and consequences of non-compliance.

1. What Is CMP-08?

• CMP-08 is the “Statement for Payment of Self-assessed Tax by Composition Taxpayer.”
• It replaces the quarterly FORM GSTR-4 (in which composition dealers previously reported liabilities) and is filed even when outward supplies are nil.
• CMP-08 captures:
  Tax payable on outward supplies (including reverse charge, if any)
  Interest, late fees, and any other amounts due.

2. Who Must File CMP-08?

All taxpayers registered under the Composition Scheme under Section 10 of the CGST Act, including:

• Manufacturers (except those manufacturing notified goods)
• Restaurants (not serving alcohol)
• Traders
• Other specified small businesses

Note: Even if you have no outward supplies in a quarter, you must file a “NIL” CMP-08.

3. Eligibility and Turnover Limits

• Aggregate turnover in the preceding financial year should not exceed ₹1.5 crore (₹75 lakh for special category States).
• Composition scheme is optional; taxpayers must have opted in; once opted, they cannot supply inter-state or export goods/services.

4. CMP-08 Due Dates and Tax Rates

Quarter	Period Covered	Due Date for CMP-08	Composition Tax Rate*
Q1	Apr – Jun	18 July	1% (traders) 2.5% (restaurants) 6% (manufacturers)
Q2	Jul – Sep	18 October	—
Q3	Oct – Dec	18 January	—
Q4	Jan – Mar	18 April	—

*Rates under CGST + SGST combined; check latest notifications for changes.

5. Step-by-Step Guide to Filing CMP-08

1.Login to GST Portal

• Go to www.gst.gov.in → Services → Returns → Quarterly Returns.

2.Select Financial Year & Quarter

• Choose the relevant period (e.g., FY 2025-26, Q1).

3.Open CMP-08

• Click ‘Prepare Online’ under CMP-08.

4.Fill Out the Details

• Table 2: Outward supplies and tax payable
• Table 3: Reverse charge supplies, if any
• Table 4: Interest (late fee if applicable)
• Table 5: Total tax liability and payment details

5.Save and Preview

• Click ‘Save’, then ‘Preview’ to check for errors.

6.File and Pay

• Select ‘Proceed to Payment’, choose payment mode (cash ledger or e-payment), and then ‘File GSTR-CMP-08’ using DSC or EVC.

7.Download Acknowledgement

• After successful filing, download the ARN receipt for your records.

6. Late Fee, Interest & Penalty

Late Fee: ₹25 per day (CGST) and ₹25 per day (SGST) subject to a maximum of tax payable.

Interest: 18% p.a. on delayed tax payment from the due date till payment date.

Penalty: In extreme cases of willful non-compliance, penalties under Section 73/74 may apply.

7. Common FAQs

Q1. Can I amend CMP-08 after filing?
No. Once filed and paid, CMP-08 cannot be revised. If a mistake occurs, you must include the correction in the next quarter’s CMP-08.

Q2. What if I exceed turnover limit mid-year?
You must migrate to the regular scheme, file FORM GSTR-1 and GSTR-3B for the remaining quarter(s), and pay tax accordingly.

Q3. Do I need to file CMP-08 if I switch out of Composition Scheme?
Yes. File CMP-08 up to the date you opt out; thereafter, file regular returns.

8. Practical Example

ABC Traders opted for composition scheme. In Q1 (Apr–Jun), they made ₹10 lakh taxable supplies as a trader (1% rate).

• Tax Liability: 1% of ₹10 lakh = ₹10,000 (CGST ₹5,000 + SGST ₹5,000)
• Late Fee: Nil (filed on time)
• Payment Entry in CMP-08:
  • Table 2: ₹10,000
  • Table 5: Total ₹10,000 → Paid via cash ledger

Conclusion

Filing CMP-08 timely and accurately helps composition dealers enjoy the benefits of simplified compliance under GST. Keep track of due dates, use the GST portal wisely, and always reconcile your supplies before filing.