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GSTCMP – 08 Return Filing, Format, Eligibility & Rule

Introduction:

An amendment was made in CGST rules to make the tax filing process for taxpayers easier and that’s FORM CMP-08 was introduced

What is Form CMP-08?

A composition dealer will use the Form CMP-08. CMP-08 is a special statement and challan to declare the details or summary of the taxpayer’s tax. It can be self-assessed tax payable for a given quarter. It also acts as a challan for making payment of tax. A composition dealer is a dealer who has been registered under the composition scheme of GST.
In addition to filing the GST CMP-08 form, a composition dealer needs to file an annual return in form GSTR-4 as well. Every person who has aggregated annual turnover as told under the GST composition scheme can choose to become a composition dealer.
A normal taxpayer registered under GST can opt for the composition scheme by filing an application in the form GST CMP-02.

Who can File CMP-08?

The taxpayers who have registered as composition dealers either by filing form GST REG-1 or form GST CMP-02 has to file Form GST CMP-08.

GST CMP-08-Who is included?

1. If the Taxpayer deals with the supply of Goods and who has a turnover of Rs. 1.50 crore in the previous financial year.
2. If the Taxpayer is a restaurant Service Provider and has Rs. 1.50 crore as turnover.
3. If the taxpayer is other than restaurant service providers and has a turnover of Rs. 50 lakhs

Exclusion

However, any registered person who has registered under Composition dealer can file the CMP-08 Form.

However, there are always exemptions.

1. A manufacturer of ice cream, pan masala, tobacco, and tobacco substitutes
2. engaged in inter-state supplies
3. a casual taxable person
4. Non – a resident taxable person
5. Engaged in the supply of goods through an electronic commerce operator
6. Making a supply of non-taxable goods

Furthermore, a composition dealer is required to pay GST at a fixed rate of turnover and file GST returns annually in the form GSTR-4.

Prior to such amendments, a composition dealer was required to make quarterly payments of tax as well as file quarterly returns in form GSTR-4.
Following are the GST tax rates applicable on manufacturers, traders, or service providers registered as composition dealers under the scheme.

Filing Process of Form CMP-08

We can file CMP-08 as
1. Nil Return
2. Not a Nil Return

Nil Return

The taxpayer can file the nil return if the taxpayer is not falling under the below activities:
1. Any outward Sale supply
2. Any liability due to reverse charge which includes import of services
3. Any other tax liability.

Not a Nil Return

The taxpayer can file the nil return if the taxpayer is not falling under the below activities:
.
1. Any outward Sale supply
2. Any liability due to reverse charge which includes import of services
3. Any other tax liability.

Penalty

In case a taxpayer fails to furnish the return on or before the due date, they will be liable to pay a late fee of Rs 200 per day. It is calculated as Rs.100 per day under CGST and Rs 100 per day under SGST.
IGST Act prescribes an amount equal to the late fees for CGST and SGST Act i.e. Rs 200 per day of delay.

Late fee charges will be subject to a maximum of Rs 5,000 from the start of the due date to the actual return filing date of the taxpayer.

Find Your GSTCMP – 08 form here: GST CMP 08