The GST Council made third amendment to the CGST Rules by inserting a provision in rule 62 with regards to filing return by a composition dealer.
The revised rule states that every composition dealer must make payment of tax in form GST CMP-08 and file an annual return in form GSTR-4.
This is unlike the initial provision where each composition dealer had to file a quarterly return in GSTR-4. Therefore, such an amendment was made in CGST rules to make the tax filing process for taxpayers less cumbersome.
This article talks about form GST CMP-08, GST CMP-08 due date, how to file CMP-08 and penalty for late filing.[/vc_column_text]
What is CMP-08?
Form GST CMP-08 is a statement that declares the details or summary of the self assessed tax payable for a given quarter by taxpayers registered as composition dealers under the GST composition scheme. This statement is used for making payment of tax every quarter by a composition dealer.
In addition to furnishing of GST CMP-08, a composition dealer is also required to file annual return in form GSTR-4. Every person who has aggregate annual turnover as prescribed under the GST composition scheme, can choose to become a composition dealer.
Such a scheme was introduced to make tax payment and return filing less cumbersome for small taxpayers. Thus, a normal taxpayer registered under GST can opt for composition scheme by filing an application in form GST CMP-02.
Further, a taxpayer who wants to migrate to the composition scheme under GST from an existing law can opt for composition levy by intimating tax authorities via GST CMP-01.
And as far as a new applicant is concerned, he can opt for composition levy via form form GST REG-01.
Who can File CMP-08?
The taxpayers who have registered as composition dealers either by filing form GST REG-1 or through form GST CMP-02 need to file form GST CMP-08. As per section 10 of the CSGT act, a registered person whose aggregate annual turnover is upto:
- Rs. 1.50 crore in the previous financial year in case of supplier of goods
- Rs. 1.50 crore in case of restaurant service providers
- Rs. 50 lakhs in case of service providers other than the restaurant service providers
can opt for the GST composition scheme.
However, a registered person shall be eligible for the composition scheme under GST if he is not:
- a manufacturer of ice cream, pan masala, tobacco and tobacco substitutes
- engaged in inter-state supplies
- a casual taxable person
- non – resident taxable person
- engaged in supply of goods through an electronic commerce operator
- making supply of non-taxable goods
Furthermore, a composition dealer is required to pay GST at a fixed rate of turnover and file GST return annually in form GSTR-4. These provisions are as per the amendments made to the provisions of the Composition Scheme in 32nd GST Council Meeting.
Prior to such amendments, a composition dealer was required to make quarterly payment of tax as well as file quarterly return in form GSTR-4.
Following are the GST tax rates applicable on manufacturers, traders or service providers registered as composition dealers under the scheme.
|Type of Taxpayer||Aggregate Annual Turnover||GST Tax Rate|
|Manufacturer or trader||up to Rs. 1.50 crores||1%|
|Restaurant service providers||up to Rs. 1.50 crores||5%|
|Other service providers||up to Rs. 50 lakhs||6%|
GST CMP-08 Due Date
Form GST CMP-08 is a statement that needs to be furnished by a composition dealer at the end of each quarter. Thus, the due date to file GST CMP-08 is 18th of the month following the quarter for which tax payment needs to be made by the composition dealer.
The following table shows the CMP-08 last dates as announced via notifications issued by the GST Council for each quarter in the financial year 2019-2020.
|Particulars||Tax Period||GST CMP-08 Last Date|
|Due date to furnish the statement containing details of payment of self assessed tax in form GST CMP-08 for the months of July 2019 to September 2019 has been extended. This notification would come into effect from October 18, 2019.||For the quarter July, 2019 to September, 2019||To 22nd October, 2019|
|Due date for filing Form GST CMP – 08 for quarter April – June 2019 has been extended||April – June 2019 Quarter||From 31st July, 2019 to 31st August, 2019|
|Due date for filing statement containing details of payment of self assessed tax in form GST CMP – 08 for April – June 2019 quarter has been extended||April – June 2019 quarter||31st July, 2019|
CMP-08 Late Fee and Interest
As per section 47 of the CGST act, 2017, any registered person who fails to furnish returns on or before the due date shall pay a late fees of Rs. 100 for each day during which such a failure continues. As per the act, Rs. 100 per say means Rs. 100 each for CGST and SGST.
Thus, the total late fee per day would amount to Rs. 200. However, the maximum amount of late fee cannot exceed Rs. 5,000.
Furthermore, along with the late fee, every registered taxpayer shall have to pay an interest of 18% per annum in case he fails to make the tax payment on or before the due date. The interest is calculated on the amount of tax to be paid by the registered person.
GST CMP-08 Format
|2.||a) Legal name||(Auto)|
|b) Trade name||(Auto)|
|c) ARN||(Auto)(After filing)|
|d) Date of filing||(Auto)(After filing)|
|3. Summary of self assessed liability|
(net of advances, credit and debit notes and any other adjustment due to amendments etc.)
|Sr. No.||Description||Value||Integrated Tax||Central Tax||State/UT Tax||Cess|
|1.||Outward supplies (including exempt supplies)|
|2.||Inward supplies attracting reverse charge including import of services|
|3.||Tax payable (1+2)|
|4.||Interest payable, if any|
|5.||Tax and interest paid|
|I hereby solemnly affirm and declare that the information given herein above is true and correct to the best of my knowledge and belief and nothing has been concealed therefrom.|
|Place:||Name of Authorized Signatory|
How to Fill CMP-08?
Under this section, the composition dealer needs to fill in his GSTIN.
2. Basic Details
Once the composition dealer fills in his GSTIN, the following details get auto-populated:
- Legal Name
- Trade Name
However, there are two other fields that get auto-populated in this section. These include:
- application reference number and
- date of filing
But, these fields get auto-populated only when the composition dealer makes the payment.
3. Summary of Self – Assessed Liability
Under this section, the taxpayer needs to provide details such as:
- outward supplies including exempt supplies
- inward – supplies attracting reverse charge including import of services
- tax payable on the above mentioned supplies
- interest payable
Furthermore, you must note that the adjustments pertaining to any advances, debit or credit notes and any other adjustments due to amendments shall be against the self – assessed tax liability.
Also, if there is a negative value after adjusting the above mentioned items, then such a negative value shall be reported as such.
Furthermore, the negative tax payable amount shall be carried forward to the next tax period and such an amount is utilized for that tax period itself.
In addition to this, if the tax payment is made after the due date, then the composition dealer is required to pay interest.
Also, even if there is no tax liability during a particular quarter, the composition dealer is required to file nil tax return.
This is the last section of form GST CMP-08. Under this section, the taxpayer acknowledges that he has provided true and correct information related to the tax and that nothing has been concealed from the tax authorities.
Such an acknowledgement is accompanied by the signature of the taxpayer.
How To File GST CMP-08?
The composition taxpayer needs to login to the GST portal using his credentials like password and username. Once he gets logged in to his account, he needs to select the ‘Services’ Tab and then click ‘Returns’.
Under the ‘Returns’ tab, select ‘Returns Dashboard’ from the given options. After selecting this option, the ‘File Returns’ Page gets displayed. You need to select the financial year and the return period for which the return needs to be filed and then select the ‘Search’ Button.
Once you select the ‘Search’ Button, you need to click ‘Prepare Online’ button in the GST CMP-08 tile.
Fill all the necessary details in the form and then submit. To know the complete procedure to file GST CMP-08, read our article on How to File GST CMP-08?