In April 2019, CBIC had introduced this form CMP-08 for the composite dealers in India replacing form GSTR 4-Quarterly vide GST Notification No. 20/2019 dated 23rd April 2019

Quick notes:

• Form CMP-08 is a quarterly return form to be filed on the 18^th day of the month succeeding the quarter.
• Composite dealers will also be required to file the revised format of form GSTR-4 Annual as their Annual Returns.
• A taxpayer can file a ‘NIL’ return if his/her total tax liability is zero for a given quarter.
• Failure to file CMP-08 is subject to a penalty of Rs. 200/day (starting from the actual due date to the actual return filing date of the taxpayer)

23 April 2019: As per GST Notification 20/2019-Central Tax ,dt. 23-04-2019 , a registered person furnishing the returns shall discharge his liability towards tax or interest payable under the Act or the provisions of this Chapter by debiting the electronic cash ledger. It is hereby declared that the person shall not be eligible to avail input tax credit on receipt of invoices or debit notes from the supplier for the period prior to his opting for the composition scheme or opting for paying tax by availing the benefit of notification.

• The proposed amendment in Rule 23 of the CGST Rules, 2017 provides as under–
  • All returns due for the period from the date of the order of cancellation of registration till the date of the order of revocation of cancellation of registration shall be furnished by the said person within a period of thirty days from the date of order of revocation of cancellation of registration.
  • Where the registration has been cancelled with retrospective effect, the registered person shall furnish all returns relating to period from the effective date of cancellation of registration till the date of order of revocation of cancellation of registration within a period of thirty days from the date of order of revocation of cancellation of registration.

What is Form CMP-08?

A quarterly statement cum challan, form CMP-08 shall be used to declare the self-assessed details of the tax payable by a composite dealer in the given quarter. Furthermore, the form can also be used as a challan for making payment of tax.

P.S: Although form CMP-08 replaces form GSTR-4, a composite dealer will still be required to file a revised version of the latter annually. i.e. by April 30 for the corresponding financial year.

Who Should file Form CMP-08?

Form CMP-08 is mandatory for every taxpayer who has registered himself using CMP-02 i.e. as a composite dealer which is applicable to the follows:

• The supplier (Manufacture or Retailer) of goods with 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.
• The supplier of services, having the aggregate annual turnover up to Rs 50 lakh in the previous financial year and fulfils the conditions mentioned under Notification Number 2/2019 Central Tax (Rate) dated 7 March 2019

How to Fill Form CMP-08?

Form CMP-08 is basically divided into the below given 4 parts, Part 3 is the crucial part, wherein the taxpayer is required to fill details such as Outward supplies,  Inward supplies, and Tax paid.

Part 1:

In the first section, the taxpayer needs to select the relevant financial year and quarter for which the return is being filed. GSTIN will get auto-populated.

Part 2:

The second part has all the legal details like the taxpayers’ legal name, trade name, ARN, date of filing. All these details are also auto-populated.

Part 3:

1. The outward supply needs to be reported after making adjustments due to amendments, netting off advances along with debit/credit notes.
2. Inward supplies attracting reverse charge including import of services need to be added in the second section. Liability is payable by the taxpayer for inward supplies is also mentioned.
3. The tax which is yet to be paid will get auto-populated in the third section.
4. Amount of interest payable needs to be updated in case of delay in return filing or tax payment is the fourth section.
5. And the details get auto-populated here in the last section which is – Tax and Interest Paid section, it has details of the amount paid in cash. GST CMP-08 is not entitled to claim ITC thus entire payment has to be made in cash. 

Part 4:

The fourth part is the verification where the taxpayer has to verify if all the information is correct and true. A signature is also required at the end as an authorised signatory.

What is the due date to file CMP-08?

Update: The due date for filing CMP-08 for the Quarter January-March 2020 is extended to 7th July 2020

Form CMP-08 is a quarterly return form that needs to be filed by a composite dealer by the 18^th day of the month following the given quarter. However,

• Due date to file form CMP-08 for the quarter April 2019 to June 2019  – Extended from 18th July 2019 to 31st July 2019 vide GST Notification No. 34/2019-Central Tax dated 18th July 2019. This was further extended to 31st August 2019 vide GST Notification No. 35/2019-Central Tax dated 29 July 2019
• Due date to file form CMP-08 for the quarter July 2019 to September 2019 – Extended from 18th October 2019 to 22nd October 2019 vide GST Notification No. 50/2019-Central Tax dated 18th July 2019
• Due date to file form CMP-08 for the quarter October 2019 to December 2019 – 18th January 2020
• Due date to file form CMP-08 for the quarter January 2020 to March 2020 – Extended from 18th April 2020 to 7th July 2020 vide GST Notification No. 34/2020-Central Tax dated 03rd April 2020
• Due date to file form CMP-08 for the quarter April 2020 to June 2020 – 18th July 2020
• Due date to file form CMP-08 for the quarter July 2020 to Sep 2020 – 18th October 2020

What is the penalty for late payment of Form CMP-08?

A taxpayer shall be liable to pay a late fee of Rs 200/day (Rs. 100/day CGST and Rs. 100/day SGST) as a consequence to failing/ being unable to file form CMP-08 in the prescribed time. However, the 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.

In addition to the late fee, interest of 18% per annum is payable in case the taxpayer fails to pay tax on or before the due date. The interest is calculated on the amount of tax payable from the due date till the date of payment

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