CMP-08 is a quarterly return-cum-challan filed by taxpayers enrolled under the Composition Scheme under GST. It allows businesses to declare their summary of sales and pay tax at a fixed rate without the complexity of monthly returns or input tax credit reconciliation. It replaces GSTR-4 for quarterly filing and helps small businesses comply easily with minimal paperwork. However, composition dealers cannot claim input tax credit, nor can their customers claim ITC on purchases from them.
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CMP-08 must be filed by all taxpayers registered under the GST Composition Scheme, including: - Small manufacturers and traders (Section 10(1)) - Restaurants not serving alcohol - Service providers under Section 10(2A) (up to ₹50 lakh turnover) Turnover Limits: - ₹1.5 crore for most states - ₹75 lakh for special category states The Composition Scheme is meant for small businesses who want to pay GST at a fixed rate without the burden of full compliance.
CMP-08 is a quarterly return that must be filed by the 18th of the month following each quarter: - Q1 (Apr–Jun): Due 18th July - Q2 (Jul–Sep): Due 18th October - Q3 (Oct–Dec): Due 18th January - Q4 (Jan–Mar): Due 18th April Filing CMP-08 on time is important to avoid late fees and preserve active GST registration.
GSTR-4A is an auto-drafted statement generated for composition taxpayers based on details uploaded by their suppliers (in GSTR-1, 5, and 7). However, composition dealers: - Do not file GSTR-4A - Only use it for viewing purposes CMP-08 is the actual return that composition taxpayers must file quarterly. GSTR-4A is a reference only, containing purchase data — but no ITC can be claimed from it.
No. Composition taxpayers cannot claim ITC on purchases made. Additionally: - They cannot issue tax invoices (only bill of supply) - Their customers also cannot claim ITC on purchases from them - Tax is paid from the taxpayer’s pocket and not collected as GST from customers This is one of the major trade-offs of opting into the scheme.
Keep the following data and documents ready: 1. Summary of outward supplies (B2B/B2C) 2. Tax payable at applicable composition rates 3. Any interest or late fees for delayed filing 4. Payment challan details 5. Previous quarter’s filing reference (for comparison)
Avoid these mistakes to ensure compliance: - Declaring incorrect turnover - Paying wrong tax amount (based on incorrect rate) - Missing due dates and attracting late fees - Confusing CMP-08 with GSTR-4 or GSTR-4A - Trying to claim ITC or file invoices with GST - Failing to issue proper bill of supply
Filing CMP-08 correctly is vital for small businesses under the Composition Scheme. At FINNBULL, we: - Compute and validate quarterly tax amounts - Ensure compliance with GST notifications and updates - Track eligibility and turnover limits - Keep you compliant with zero hassle Let FINNBULL handle your CMP-08 and simplify your GST obligations today.