CMP-08 Filing

The CMP-08 is the quarterly return and payment statement for taxpayers registered under the GST composition scheme under Section 10 of the CGST Act. Unlike regular taxpayers who file GSTR-1 and GSTR-3B monthly, composition dealers file one consolidated return-statement each quarter. The CMP-08 combines the tax computation with the payment, making it simpler than the regular return cycle. The composition dealer calculates the tax payable at the reduced rate — 0.5% CGST (1% for manufacturers), 2.5% SGST (5% for restaurants), or 3% (6% for service providers) — on the total turnover for the quarter, pays it via PMT-06 challan, and files the CMP-08 statement confirming the payment. The filing must be done quarterly, even if there were no transactions during the quarter — a NIL return is still required.

Why Filing CMP-08 on Time Is Critical for Composition Dealers

The due date for CMP-08 is the 18th of the month following the quarter — 18 July for Q1 (April-June), 18 October for Q2 (July-September), 18 January for Q3 (October-December), and 18 April for Q4 (January-March). Missing this deadline attracts a late fee of ₹50 per day (₹25 CGST + ₹25 SGST) capped at ₹2,000 per return. More importantly, if the tax is not paid by the due date, interest at 18% per annum accrues from the due date. The composition scheme is a simplified reporting scheme, but non-filing does not mean the dealer escapes GST liability — the regular return cycle with higher tax rates becomes applicable from the quarter following non-filing, and the GST department actively monitors composition filers through the returns data.

The Two Key Restrictions Every Composition Dealer Must Know

The composition scheme comes with two critical restrictions that every dealer must understand before opting in. First, composition dealers cannot issue tax invoices — they can only issue a Bill of Supply (which does not show tax) to their customers. This means their customers cannot claim input tax credit on purchases from a composition dealer. For B2B sellers, this is often a dealbreaker — most registered businesses prefer buying from regular GST filers so they can claim ITC. Second, composition dealers cannot make inter-state supplies — any inter-state transaction automatically exits the composition scheme. These restrictions mean the composition scheme is best suited for B2C businesses, retailers, and wholesalers selling primarily to unregistered persons or end-consumers.

How FinTax24 Ensures Accurate CMP-08 Filing Every Quarter

Our process begins each quarter by collecting your sales data — total sales, exempt sales, interstate sales (if any), and any purchases from regular dealers. We reconcile this against your GST records and books of accounts. Our CA computes the composition tax at the applicable rate, generates the PMT-06 challan, and we confirm the payment through the GST portal. The CMP-08 statement is then prepared and filed with the confirmed challan details. We share the filed CMP-08 ARN receipt within one working day of the filing. For clients with multiple composition registrations across states, we manage each state's filing separately — since the composition scheme is state-specific, each state registration has its own CMP-08 filing cycle.