What Is CMP-08?

Understanding CMP-08 for Composition Scheme Taxpayers under GST in India

CMP-08 is a quarterly statement cum challan that must be filed by taxpayers registered under the Composition Scheme under the Goods and Services Tax (GST) regime in India. 

Key Features of CMP-08:

1. For Composition Scheme Taxpayers:

CMP-08 is specifically for taxpayers who have opted for the Composition Scheme under GST. 

This scheme is designed for small taxpayers with an annual turnover of up to ?1.5 crores.

2. Quarterly Filing:

Taxpayers registered under the Composition Scheme are required to file CMP-08 on a quarterly basis.

The due date for filing CMP-08 is typically the 18th of the month following the end of the quarter.

3. Summary Statement:

CMP-08 serves as a summary statement cum challan where taxpayers report details of their outward supplies (including exempt supplies) and tax payable.

4. Details of Outward Supplies:

Taxpayers provide details of their outward supplies made during the quarter, including supplies to registered and unregistered persons, exports, and supplies attracting reverse charge mechanism (RCM).

5. Calculation of Tax Liability:

Based on the outward supplies reported, taxpayers calculate their tax liability for the quarter, including the tax payable under the Composition Scheme.

6. Challan Generation:

After calculating the tax liability, taxpayers generate a challan for payment of tax due. 

The tax payable is adjusted against the tax collected from the supplies made during the quarter.

7. Verification and Declaration:

Taxpayers verify the correctness of the details provided in CMP-08 and make a declaration regarding the accuracy of the information furnished.

 Key Sections in CMP-08:

Part I: Basic details such as GSTIN, legal name, and trade name (if any) of the taxpayer.

Part II: Details of outward supplies made during the quarter, including supplies to registered and unregistered persons, exports, and supplies attracting reverse charge mechanism (RCM).

Part III: Calculation of tax liability for the quarter.

Part IV: Challan generation and payment of tax due.

Part V: Verification and declaration by the taxpayer regarding the correctness of the information provided.

Benefits of CMP-08:

Simplified Compliance: CMP-08 simplifies GST compliance for taxpayers under the Composition Scheme by providing a summary statement cum challan for quarterly reporting and payment of tax.

Reduced Compliance Burden: Quarterly filing reduces the compliance burden for small taxpayers, allowing them to focus more on their business operations.

Promotes Ease of Doing Business: CMP-08 promotes ease of doing business by providing a simplified mechanism for tax reporting and payment for taxpayers registered under the Composition Scheme.