CMP-08 Filing

The CMP-08 is the quarterly return and payment statement for GST composition dealers under Section 10 of the CGST Act. Unlike regular taxpayers who file GSTR-1 and GSTR-3B monthly, composition dealers file one consolidated return each quarter. The CMP-08 combines the tax computation with the payment. The composition dealer calculates tax at the reduced rate on total turnover for the quarter. This is 0.5% CGST (1% for manufacturers), 2.5% SGST (5% for restaurants), or 3% (6% for service providers). The dealer pays via PMT-06 challan. The dealer files the CMP-08 statement confirming the payment. Filing must be done quarterly, even with zero transactions. A NIL return is required.

Why Filing CMP-08 on Time Is Critical for Composition Dealers

The due date for CMP-08 is the 18th of the month following each quarter. Q1 is 18 July. Q2 is 18 October. Q3 is 18 January. Q4 is 18 April. Missing this deadline attracts a late fee of ₹50 per day (₹25 CGST + ₹25 SGST) capped at ₹2,000 per return. If the tax is not paid by the due date, interest at 18% per annum accrues from the due date. Non-filing does not mean the dealer escapes GST liability. The regular return cycle with higher tax rates becomes applicable from the quarter following non-filing. The GST department actively monitors composition filers through the returns data.

The Two Key Restrictions Every Composition Dealer Must Know

The composition scheme has two critical restrictions. First, composition dealers cannot issue tax invoices. They can only issue a Bill of Supply (without tax shown) to their customers. Their customers cannot claim input tax credit on those purchases. For B2B sellers, this is often a dealbreaker. Most registered businesses prefer buying from regular GST filers so they can claim ITC. Second, composition dealers cannot make inter-state supplies. Any inter-state transaction automatically exits the composition scheme. These restrictions mean the composition scheme is best suited for B2C businesses, retailers, and wholesalers selling to unregistered persons or end-consumers.

How FinTax24 Ensures Accurate CMP-08 Filing Every Quarter

Our process begins each quarter by collecting your sales data. We reconcile total sales, exempt sales, interstate sales, and any purchases from regular dealers against your GST records. Our expert computes the composition tax at the applicable rate. Our expert generates the PMT-06 challan. We confirm the payment through the GST portal. We file the CMP-08 statement with the confirmed challan details. We share the filed CMP-08 ARN receipt within one working day. For clients with multiple composition registrations across states, we manage each state's filing separately. Each state registration has its own CMP-08 filing cycle since the composition scheme is state-specific.