Non filing of cmp 08 while it is to be nil filed penality order u/s 125 is done and imposed penality

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Pradeep Gupta

Pradeep Gupta (Querist)
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28 January 2025 please provide me solution sothat this penality may be zero

Aashok Kumar Sharma

Aashok Kumar Sharma (Expert)
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12 August 2025 If you’ve received a penalty order under Section 125 of the CGST Act for non-filing of CMP-08 (even if NIL), here’s how you can try to get the penalty waived or reduced to zero.

🔍 Context:
You were under Composition Scheme.

You failed to file CMP-08, even though it was NIL return (i.e., no outward or inward supplies).

Department has issued penalty order under Section 125 (general penalty – up to ₹25,000).

Penalty imposed even though no tax liability existed.

✅ Suggested Course of Action:
1. File Pending CMP-08 Returns Immediately
Even if late, file all CMP-08 returns for the defaulted period.

System may still allow filing with late fees; late fee for NIL returns is ₹50 per day (₹25 CGST + ₹25 SGST) capped at ₹500 per Act (₹1,000 total).

2. Check for Amnesty Scheme
As of now, there may not be an active amnesty scheme covering CMP-08 penalties, but CBIC has occasionally notified such relaxations.

You can request me to check latest notifications if needed.

3. File a Reply or Representation against the Penalty Order
You can submit a letter to the jurisdictional officer requesting waiver of penalty under natural justice and bonafide mistake grounds.

Mention:

It was a NIL return, so no revenue loss occurred.

Delay was inadvertent.

Compliance is now completed.

You are a small taxpayer under composition scheme.

📝 Sample Format – Representation Letter
To:
Jurisdictional GST Officer
[Office Address]

Subject: Request for Waiver of Penalty under Section 125 – Late Filing of NIL CMP-08

Respected Sir/Madam,

I am a composition taxpayer under GST bearing GSTIN: [XXXXXXXXXX]. Due to inadvertence, I failed to file CMP-08 for the period [insert quarter/year] in time. However, the return was NIL, and no tax was payable.

I have now filed the pending CMP-08 and brought my compliance up to date.

I humbly request your good office to waive the penalty under Section 125, considering:

There was no tax evasion or loss to revenue.

The default was unintentional and rectified voluntarily.

I am a small taxpayer with limited resources.

I request you to kindly consider this representation sympathetically and drop the penalty proceedings.

Thanking you.
Yours faithfully,
[Name]
[GSTIN]
[Mobile/Email]

4. Appeal (If Penalty Order Already Passed)
If the officer rejects the waiver and issues a final order under Sec 125, you can:

File an appeal under Section 107 (within 3 months).

You’ll need to pre-deposit 10% of the disputed penalty.

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