To streamline compliance for composition dealers, a revised tax payment procedure was implemented in April 2019. This change introduced Form CMP-08, effective from the financial year 2019-2020, replacing the previous quarterly GSTR-4 statement for these taxpayers.

What is Form CMP-08?

Form CMP-08 serves as a combined statement and payment challan used by Goods and Services Tax (GST) composition dealers. It allows them to report and pay their self-assessed tax liabilities for each quarter. A composition dealer is a taxpayer enrolled in the GST composition scheme for supplying both goods and services. Besides Form CMP-08, these dealers must also submit their annual return through the updated Form GSTR-4 by April 30th after the financial year concludes.

Who should file CMP-08?

Taxpayers who have chosen the composition scheme are required to file CMP-08 quarterly to make their tax deposits. This applies to two main categories of taxpayers registered via Form CMP-02 (opting into the composition scheme):

• Suppliers of goods, including manufacturers and retailers, whose aggregate annual turnover in the preceding financial year was up to Rs. 1.5 crore (or Rs. 75 lakhs for specific special category states, excluding Jammu & Kashmir and Uttarakhand). Exceptions include manufacturers of certain products like ice cream, pan masala, or tobacco; individuals involved in inter-state supplies; those supplying non-taxable goods under GST; casual or non-resident taxable persons; and businesses selling goods through e-commerce platforms.
• Suppliers of services who meet the criteria outlined in Notification Number 2/2019 Central Tax (Rate) dated March 7, 2019, provided their aggregate annual turnover in the previous financial year did not exceed Rs. 50 lakh.

What is the due date to file the Form CMP-08?

The quarterly Form CMP-08 must be submitted by the 18th day of the month immediately following the end of each quarter of the fiscal year. For instance, the deadline for the January-March 2024 quarter was April 18, 2024.

What is the penalty for not filing CMP-08 within the due date?

Failure to submit Form CMP-08 by the stipulated deadline incurs a late fee of Rs. 200 per day of delay, comprising Rs. 100 under CGST and Rs. 100 under SGST. The IGST Act also mandates a late fee of Rs. 200 per day. The total late fee is capped at Rs. 5,000 from the due date until the actual filing date. Furthermore, if a taxpayer misses filing CMP-08 for two consecutive quarters, their e-way bill generation facility will be blocked. To reactivate it, the taxpayer must submit an application in Form GST EWB 05 to the relevant tax authority and file all outstanding forms for prior quarters.

How does a taxpayer fill CMP-08?

To complete Form CMP-08, taxpayers must provide specific information through a multi-step process:

1. Enter GSTIN: The initial step involves inputting the taxpayer's Goods and Services Tax Identification Number (GSTIN).
2. Auto-filled Details: Upon entering the GSTIN, essential information such as the legal name and trade name will automatically populate. The Application Reference Number (ARN) and filing date will be updated after the tax payment is processed.
3. Self-Assessed Tax Liability Summary: The form's third section requires a summary of the self-assessed tax liability. This includes details of outward supplies subject to tax, inward supplies under reverse charge, and import transactions. Additionally, any applicable tax payments and interest (if incurred) must be declared.
4. Verification and Signature: The final step necessitates the taxpayer's confirmation and signature, verifying the accuracy of all submitted details.

Important Considerations for Taxpayers:

• A 'NIL' return for CMP-08 can be filed if there is no tax liability for a particular quarter, and this can even be done via SMS.
• Missing the filing deadline will result in liability for both interest and penalties.
• Reported tax liabilities should incorporate adjustments for advances, credit notes, debit notes, or any necessary rectifications.