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Latest Updates on CMP-08

As per the outcome of the 43rd GST Council meeting and CBIC notification, The due date to file GSTR-4 for FY 2020-21 was extended to 18th Jan 2022.

In April 2019, a new tax payment process was laid down for composition dealers to simplify compliance for them. Form CMP-08 was introduced in April 2019 and was made applicable from FY 2019-2020 onwards. It replaces the erstwhile quarterly GSTR-4 filed by composition dealers.

What is Form CMP-08?

A composition dealer will use Form CMP-08, which is a special statement-cum-challan to declare the details or summary of his/her self-assessed tax payable for a given quarter. It also acts as a challan for making payment of tax. 

A composition dealer is a dealer who has been registered under the composition scheme laid down for both supplies of goods and services. In addition to Form CMP-08, a composition dealer will also need to file his/her annual return via the revised format of Form GSTR-4 by 30 April following the end of a specific fiscal year.

Who should file CMP-08?

A taxpayer who has opted for the composition scheme 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):

  • The supplier of goods being manufacturers, retailers having an annual aggregate turnover of up to Rs.1.5 crore (Rs.75 lakhs for special category States except for Jammu & Kashmir and Uttarakhand) in the previous financial year, except:
  • Manufacturer of ice cream and other edible ice (whether or not containing cocoa), pan masala, or tobacco and manufactured tobacco substitutes.
  • A person making inter-state supplies.
  • A person supplying goods that are not taxable under GST Law.
  • A casual taxable person or a non-resident taxable person.
  • Businesses that supply goods through an e-commerce operator.
  • The supplier of services who fulfil the conditions mentioned under Notification Number 2/2019 Central Tax (Rate) dated 7 March 2019 has an aggregate annual turnover up to Rs.50 lakh in the previous financial year.

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

In case a taxpayer fails to furnish his/her statement 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 filing date of the taxpayer.

Moreover, if CMP-08 of two consecutive quarters are not filed, then the e-way bill generation gets blocked. For unblocking, taxpayers need to apply to the jurisdictional tax official in Form GST EWB 05. They may also be required to file all pending forms for previous quarters.

The due date to file GSTR-4 for FY 2020-21 was extended from 30th April 2021 to 18th Jan 2022.

In April 2019, a new tax payment process was laid down for composition dealers to simplify compliance for them. Form CMP-08 was introduced in April 2019 and was made applicable from FY 2019-2020 onwards. It replaces the erstwhile quarterly GSTR-4 filed by composition dealers.

What is Form CMP-08?

A composition dealer will use Form CMP-08, which is a special statement-cum-challan to declare the details or summary of his/her self-assessed tax payable for a given quarter. It also acts as a challan for making payment of tax. 

A composition dealer is a dealer who has been registered under the composition scheme laid down for both supplies of goods and services. In addition to Form CMP-08, a composition dealer will also need to file his/her annual return via the revised format of Form GSTR-4 by 30 April following the end of a specific fiscal year.

Who should file CMP-08?

A taxpayer who has opted for the composition scheme 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):

  • The supplier of goods being manufacturers, retailers having an annual aggregate turnover of up to Rs.1.5 crore (Rs.75 lakhs for special category States except for Jammu & Kashmir and Uttarakhand) in the previous financial year, except:
  • Manufacturer of ice cream and other edible ice (whether or not containing cocoa), pan masala, or tobacco and manufactured tobacco substitutes.
  • A person making inter-state supplies.
  • A person supplying goods that are not taxable under GST Law.
  • A casual taxable person or a non-resident taxable person.
  • Businesses that supply goods through an e-commerce operator.
  • The supplier of services who fulfil the conditions mentioned under Notification Number 2/2019 Central Tax (Rate) dated 7 March 2019 has an aggregate annual turnover up to Rs.50 lakh in the previous financial year.

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

In case a taxpayer fails to furnish his/her statement 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 filing date of the taxpayer.

Moreover, if CMP-08 of two consecutive quarters are not filed, then the e-way bill generation gets blocked. For unblocking, taxpayers need to apply to the jurisdictional tax official in Form GST EWB 05. They may also be required to file all pending forms for previous quarters.