CMP-08
Composition
Scheme Return
CMP-08 is the quarterly tax payment statement for businesses registered under GST Composition Scheme. Filed 4 times a year — by 18th of the month following each quarter. CA-assisted, accurate, on time.
What is CMP-08?
Form GST CMP-08 is a quarterly statement-cum-challan that composition scheme taxpayers must file to declare their outward supplies and inward supplies attracting reverse charge for each quarter, and to pay the tax due on those supplies. It replaced the earlier quarterly return (GSTR-4) for tax payment purposes from FY 2019–20 onwards.
Think of CMP-08 as the composition taxpayer's equivalent of GSTR-3B — it's filed quarterly (not monthly), and it's both a declaration and a challan in one. The annual summary of all four CMP-08 payments is consolidated in GSTR-4 (Annual Return), filed once a year by 30th April.
CMP-08 — Tax Payment Statement
GSTR-4 — Annual Return
CMP-08 is Both a Declaration AND a Payment
Unlike regular taxpayers who file GSTR-3B and make a separate GST payment, composition taxpayers do both in one step via CMP-08. The form itself generates the tax challan — so tax is paid at the time of filing. If you file CMP-08 without paying the tax, it is treated as an incomplete filing.
Who Must File CMP-08?
Every GST taxpayer registered under the Composition Scheme must file CMP-08 every quarter. The Composition Scheme has two variants — the regular Composition Scheme (for goods dealers and restaurants) and the Special Composition Scheme for service providers (SORP). Both must file CMP-08.
Goods Traders & Manufacturers
Businesses engaged in supply of goods (traders, manufacturers) with aggregate turnover up to ₹1.5 Crore in the preceding FY
Tax Rate: 1% of turnoverRestaurants & Food Service
Restaurants not serving alcohol, food stalls, and eateries with turnover up to ₹1.5 Crore — supply of food and beverages
Tax Rate: 5% of turnoverService Providers (SORP)
Service providers (except restaurants) and mixed supply businesses with turnover up to ₹50 Lakh under the Special Composition Scheme
Tax Rate: 6% of turnoverStates with Higher Limits — Special Category States
For goods traders and manufacturers, the turnover threshold for composition is ₹75 Lakh (instead of ₹1.5 Crore) in Special Category States: Arunachal Pradesh, Manipur, Meghalaya, Mizoram, Nagaland, Sikkim, Tripura, and Uttarakhand. The CMP-08 filing process is identical regardless of which state you operate in.
Tax Rates in Detail
| Business Category | Turnover Limit | GST Rate | CGST | SGST |
|---|---|---|---|---|
| Traders (Goods) | ₹1.5 Crore | 1% of taxable turnover | 0.5% | 0.5% |
| Manufacturers (Goods) | ₹1.5 Crore | 2% of taxable turnover | 1% | 1% |
| Restaurant / Food Service | ₹1.5 Crore | 5% of taxable turnover | 2.5% | 2.5% |
| Service Provider (SORP) | ₹50 Lakh | 6% of taxable turnover | 3% | 3% |
| Inward Supplies (RCM) — all | — | Applicable GST rate | Reverse Charge — paid at normal rates regardless of composition | |
CMP-08 Due Dates — All Four Quarters
18th Is a Hard Deadline — No Grace Period
The 18th is the statutory due date with no built-in grace. If 18th falls on a public holiday or Sunday, the due date shifts to the next working day — but do not assume this. TaxClue files all CMP-08 returns at least 3 days before the deadline to ensure zero late fees for all clients.
What Is Reported in CMP-08 & How to File
What CMP-08 Contains
| Table | What to Report | Example |
|---|---|---|
| Table 3(a) | Outward supplies on which tax is payable (turnover on which composition tax applies) | Total sales made during the quarter from your business |
| Table 3(b) | Inward supplies attracting reverse charge (RCM) — purchases from unregistered suppliers | Purchases from unregistered vendors where you must pay GST under RCM |
| Table 3(c) | Import of services attracting IGST — if you received services from outside India | e.g. subscription to foreign software, consulting from foreign firm |
| Tax Payable | Total tax due = Composition tax on 3(a) + RCM tax on 3(b) + IGST on 3(c) | e.g. 1% × ₹5,00,000 turnover = ₹5,000 composition tax |
| Tax Paid | Amount paid via electronic cash ledger — same as tax payable | CMP-08 cannot be filed until the tax is paid in full |
Step-by-Step CMP-08 Filing
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1
Calculate Quarterly Turnover
Add up all your sales / supplies made during the quarter (April–June, July–September, etc.). Include cash sales, credit sales, and any advance received and adjusted. Do not include exempt supplies, nil-rated supplies, or supplies outside GST scope.
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2
Calculate RCM Liability
Identify any purchases from unregistered suppliers (goods or services). GST under Reverse Charge on these purchases must be paid by you at normal rates — this is separate from your composition tax and goes into Table 3(b).
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3
Compute Total Tax Payable
Apply your applicable rate (1%, 2%, 5%, or 6%) to your turnover. Add any RCM liability and IGST on imported services. This is the total amount to be paid before filing.
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4
Add Funds to Electronic Cash Ledger
Login to gst.gov.in → Services → Payments → Create Challan. Add funds to your Electronic Cash Ledger under the applicable heads (CGST, SGST, IGST for RCM). Funds must be available before CMP-08 can be submitted.
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5
Login and Open CMP-08 on GST Portal
GST Portal → Services → Returns → Quarterly Return Composition Levy → Select the relevant quarter and financial year → Open Form CMP-08.
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6
Fill in Tables 3(a), 3(b), 3(c)
Enter your outward supply turnover, RCM purchases, and imported service values. The portal automatically computes the tax based on your composition category registered on the GSTIN.
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7
Pay Tax and Submit
Verify the auto-computed tax. Set-off with available Electronic Cash Ledger balance. Submit with DSC (companies) or EVC (OTP for proprietors and partnerships). Filing acknowledgement (ARN) is generated immediately.
TaxClue Files CMP-08 for You — End to End
Every quarter, you share your sales summary with TaxClue (WhatsApp a photo of your ledger, Tally export, or even a simple list of monthly sales figures). Our CA computes the tax, adds the challan to your ledger, fills CMP-08, and files it — all before the 18th. You get a filing confirmation the same day.
Composition Scheme — Key Restrictions
The Composition Scheme gives you simpler compliance and lower tax rates — but comes with important restrictions that every composition taxpayer must be aware of.
❌ You CANNOT Do These Under Composition Scheme
✓ You CAN Do These Under Composition Scheme
Voluntary or Mandatory Exit from Composition Scheme
If your aggregate turnover crosses the prescribed limit (₹1.5 Crore for goods, ₹50 Lakh for services) at any point during the year, you must immediately opt out of composition and register as a regular taxpayer. From the date of crossing the limit, you must charge GST on all supplies and file GSTR-1 and GSTR-3B. TaxClue monitors your turnover and alerts you when you approach the threshold.
Documents Required for CMP-08 Filing
Share these with TaxClue every quarter and we handle the rest:
Late Fee & Penalties for CMP-08
Filing CMP-08 after the 18th due date attracts a per-day late fee. Additionally, if tax is paid late, interest accrues from the day after the due date at 18% per annum.
⚠️ CMP-08 Late Filing Consequences
| Default | Late Fee | Maximum | Interest |
|---|---|---|---|
| Filed after 18th (tax paid) | ₹50/day (₹25+₹25) | ₹2,000 per return | Nil (tax already paid) |
| Filed after 18th (tax unpaid) | ₹50/day | ₹2,000 per return | 18% p.a. from 18th to payment date |
| Not filed (nil turnover quarter) | ₹50/day | ₹2,000 per return | Nil (no tax due) |
| Multiple quarters pending | ₹50/day × each quarter | ₹2,000 per return | 18% p.a. on each quarter's tax separately |
Even If Turnover Is Zero — File CMP-08
Composition taxpayers must file CMP-08 every quarter even if there were no sales during that period. A nil CMP-08 takes under 2 minutes to file but skipping it still attracts ₹50/day late fee. TaxClue files nil CMP-08 proactively for clients who inform us of zero-activity quarters.
Frequently Asked Questions
CMP-08 is a quarterly statement filed 4 times a year (by 18th of the month following the quarter end). It is both a declaration of turnover and a tax payment challan — tax is paid when you file CMP-08. GSTR-4 is the annual return filed once a year by 30th April, which consolidates all 4 CMP-08 quarters and provides a complete annual picture. Think of CMP-08 as the quarterly instalment and GSTR-4 as the annual reconciliation.
Yes — CMP-08 must be filed every quarter even if turnover is nil. There is no exemption from filing for inactive quarters. A nil CMP-08 has zero tax payable but must still be submitted on the portal before the 18th. Skipping a nil return still attracts ₹50/day late fee until the form is filed. TaxClue handles nil CMP-08 filings as part of the quarterly package.
No — composition scheme taxpayers cannot make inter-state supply of goods. Only intra-state supply (within the same state) is permitted. If you need to sell to customers in another state, you must exit the composition scheme and register as a regular taxpayer. However, services under SORP (the service provider composition scheme) are permitted to be provided interstate — only goods supply is restricted. TaxClue advises on whether your business mix requires switching to regular scheme.
You must immediately opt out of the Composition Scheme from the day your turnover exceeds the threshold. File Form GST CMP-04 (Intimation to withdraw from composition) within 7 days of crossing the limit. From that date, you must register as a regular taxpayer, start charging GST, file GSTR-1 and GSTR-3B, and claim ITC on purchases. You will still file CMP-08 for the period before the threshold was crossed. TaxClue manages the full transition — cancellation of composition, regular registration, and backlog filing.
No — composition taxpayers cannot claim any Input Tax Credit. The tax paid via CMP-08 (composition tax on outward supplies) is a cost to your business — it cannot be passed on to customers and cannot be recovered from suppliers either. This is one of the trade-offs of the composition scheme: lower tax rate, simpler compliance, but no ITC. If your business has significant input purchases with GST, TaxClue can model whether regular scheme with ITC would actually be more economical for you.
Yes — pending CMP-08 returns can be filed at any time, but late fees (₹50/day up to ₹2,000 per return) and interest (18% p.a. on unpaid tax) will apply for each delayed quarter. The GST Council has periodically announced late fee amnesty schemes that cap or waive late fees for past defaults — TaxClue assesses the current amnesty position before filing to minimise your liability. Multiple pending quarters must be filed in chronological order (oldest first) before the current quarter can be filed.
CMP-08 Filed On Time, Every Quarter
TaxClue's CA handles your quarterly CMP-08 filings — you just share your sales figures and we do the rest. Zero late fees, zero stress.
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