Filing Process Of CMP-08

All the registered taxpayers paying tax under the provisions of section 10 of CGST Act 2017 or availing benefits of Notification No. 2/2019-Central Tax (Rate) dated 07th March 2019 have been categorized under ‘special category of persons by the CBDT. A special procedure has been laid out by the CBDT via Notification no. 21/2019 – Central Tax dated 23rd April 2019 for such persons to file their tax returns, registered under the composition scheme.

Such specified persons are required to furnish their return statement with the help of Form GST CMP-08 on a quarterly basis (on or before the 18th of the month following the quarter of any given financial year).

What is Form CMP-08?

Form CMP-08 is a statement-cum-challan which are used by composition dealers under the Goods and Services Tax (GST) regime to declare the self-assessed tax payable for a specific quarter and serves as a challan for making tax payments.

Composition dealers are those who are registered under the composition scheme of GST, which offers a simplified compliance framework for small businesses.

Additionally, composition dealers need to file their annual return using the revised format of Form GSTR-4 by April 30 following the end of the financial year.

Who are required to file CMP-08?

 A taxpayer who has opted for the composition scheme under the GST regime has to file CMP-08 in order to deposit payments every quarter. There are two kinds of taxpayers registered using CMP-02 (Opt into Composition scheme):

1.The supplier of goods being manufacturers, retailers having an annual aggregate turnover of up to Rs 1.5 crore in the previous financial year, except:

• Manufacturer of ice cream, pan masala, or tobacco.
• A person making inter-state supplies.
• A casual taxable person or a non-resident taxable person.
• Businesses which supply goods through an e-commerce operator.

2.The supplier of services who fulfill the conditions mentioned under the Notification Number 2/2019 Central Tax (Rate) dated 7 March 2019 having the aggregate annual turnover up to Rs 50 lakhs in the previous financial year.

What is the due date for filing the form CMP-08?

Form CMP-08 must be filed on a quarterly basis, on or before the 18th of the month succeeding the quarter of any specific financial year.

For 4th quarter Jan 24 to Mar 24 due date is 18 Apr 2024.

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

If a taxpayer fails to furnish his/her return on or before the due date, he or she will be liable to pay a late fee of Rs 200 per day for every day of delay. i.e. 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.

Filing Process of Form CMP-08

We can file CMP-08 in two ways:

i. Nil Return
ii. Not a Nil Return

Let'o;s discuss the following topics in detail.

1. Nil Return

The taxpayer can file the nil return, if taxpayer not perform the below mentioned activities:

• Any outward supply(Commonly known as sale)
• Any liability due to reverse charge (including import of services)
• Any other tax liability.

The filing process for Nil CMP-08 are:

i. Log in at GST Portal.

ii. Click on Services > Return Dashboard > Select Return Filing Period and Financial Year.

iii. Click on CMP-08 then following window will get displayed:

iv. Click on “File Nil GST CMP-08” to file Nil CMP-08.

v. Then click on Save Tab.

vi. After Clicking on Save then click on “Preview Draft GST CMP-08”.

vii. After clicking on “Preview Draft GST CMP-08” then click on “File GST CMP-08” to file the form, Taxpayer can file the form as per applicability (EVC or DSC)

viii. After Form CMP-08 is filed:

• ARN is generated on successful filing of the Form GSTR-4 Return.
• An SMS and an email are sent to the taxpayer on his registered mobile and email id.

2. Not a Nil Return

The taxpayer needs to file taxable CMP-08, if taxpayer perform the below mentioned activities:

• Any outward supply(Commonly known as sale)
• Any liability due to reverse charge (including import of services)
• Any other tax liability.

The filing process for Nil CMP-08 are:

i. Log in at GST Portal.

ii. Click on Services > Return Dashboard > Select Return Filing Period and Financial Year.

iii. Click on CMP-08 then following window will get displayed:

iv. The taxpayer needs to enter the details related to the below mentioned details:

• Outward supply (including exempt supply).
• Inward supplies attracting reverse charge including including import of services.
• Interest payable, if any.

v. After entering the details taxpayer needs to click on Save button.

vi. After Clicking on Save then click on “Preview Draft GST CMP-08”.

vii. After clicking on “Preview Draft GST CMP-08” then click on “Proceed to File” tab.

When taxpayer clicks on “Proceed to File” tab then status shows “Ready to File” and message shows “Compute Liabilities request has been received,please check the status in sometime”.

viii. After clicking on “Proceed to File” tab following window will get displayed, where taxpayer view the reported liabilities and balance available in cash ledger.

ix. If sufficient balance is available in cash ledger then click on “File GST CMP-08”, if not then click on “Create Challan” and paid the tax liabilities accordingly.

x. After clicking on “File GST CMP-08” to file the form, Taxpayer can file the form as per applicability (EVC or DSC)

xi. After Form CMP-08 is filed:

• ARN is generated on successful filing of the Form GSTR-4 Return.
• An SMS and an email are sent to the taxpayer on his registered mobile and email id.