Form CMP-08: the quarterly tax statement for composition dealers

What is CMP-08?

CMP-08 is how a composition dealer pays GST. Each quarter, you declare the turnover of outward supplies, the tax payable at your composition rate, tax on inward supplies liable to reverse charge, and interest if any. You then pay the total in cash from the electronic cash ledger. Composition dealers cannot use input tax credit, so every rupee is paid in cash.

CMP-08 replaced the old quarterly GSTR-4 from April 2019. The annual GSTR-4 now pulls the four CMP-08 figures together, so an error in any quarter flows straight into the annual return.

Due dates for 2026-27

Even if you made no sales in a quarter, you file a nil CMP-08. Nil statements can be filed through the portal or by SMS from the registered mobile number.

What data do you need?

CMP-08 is short, but each figure must agree with your books because the annual GSTR-4 later relies on the four quarterly statements and cannot easily explain differences. You will need the following.

• Turnover of outward supplies for the quarter, including exempt supplies
• Your composition rate: 1% for manufacturers and traders, 5% for eligible restaurants, 6% for service providers under section 10(2A)
• Inward supplies attracting reverse charge, including from unregistered persons where notified, and imports of services
• Cash ledger balance or a PMT-06 challan for the total amount
• Interest for any tax paid after the due date

Who can stay in the scheme and when to leave it

CMP-08 applies only while you remain eligible for composition. Eligibility ends if aggregate turnover crosses ₹1.5 crore (₹75 lakh in certain special category states) or ₹50 lakh for service providers under section 10(2A), or if you start inter-state outward supplies of goods, supplies through e-commerce operators that collect tax, or manufacture of notified goods such as ice cream, pan masala and tobacco.

When you become ineligible, file Form CMP-04 within seven days and move to regular returns from that date. The CMP-08 for the part of the quarter you were in the scheme still has to be filed. To join the scheme for a new financial year, existing registrants file Form CMP-02 before the year begins.

Interest, consequences and common errors

Tax paid after the 18th attracts interest at 18% a year under section 50. The portal treats CMP-08 as a payment statement, so it is interest rather than a daily late fee that builds up, but repeated delays carry other costs.

If a composition taxpayer fails to file CMP-08 for two consecutive quarters, rule 138E blocks the generation of e-way bills for that GSTIN, which can halt movement of goods. Continued default can lead to cancellation of registration and best judgement assessment.

Common errors include applying the wrong rate, forgetting reverse charge tax, declaring turnover only of taxable supplies, and making the payment without filing the statement. A challan sitting in your cash ledger does not count as filing; you must submit CMP-08 for the payment to be set off. Refogo's partner professionals can handle CMP-08 filings for a fixed fee.

Step by step

1. 1Compute quarterly turnover

   Total outward supplies from your sales register for the quarter.

2. 2Apply the composition rate

   Calculate CGST and SGST at your applicable rate and add reverse charge tax.

3. 3Deposit tax via PMT-06

   Create a challan and pay through net banking, UPI, card or over the counter.

4. 4File CMP-08

   Open Form GST CMP-08 under Services, Returns, enter figures and preview the liability.

5. 5Submit and sign

   File with DSC or EVC; the tax is debited from the cash ledger.