CMP-08: Quarterly Tax Payment for Composition Dealers

What is CMP-08?

CMP-08 is the quarterly statement-cum-challan filed by composition dealers under Section 10 of CGST Act. It captures:

• Quarterly turnover of outward supplies (intra-state only for composition)
• Tax payable at applicable composition rate (1% / 5% / 6%)
• Inward supplies under reverse charge (if any)
• Tax payable on these (RCM)
• Payment details (challan reference)

Due dates

Quarterly — 18th of month following the quarter end:

• Q1 (Apr-Jun): Due 18 July
• Q2 (Jul-Sep): Due 18 October
• Q3 (Oct-Dec): Due 18 January
• Q4 (Jan-Mar): Due 18 April

Each quarter is independent — tax for the quarter is paid at end. No monthly payments.

Late filing penalty

• ₹50/day for late filing (capped at ₹5,000)
• Plus interest at 18% p.a. on unpaid tax
• Continued non-filing → Officer can suo motu cancel composition (REG-17) and migrate you to regular GST retrospectively

Migration to regular costs much more (back taxes, ITC reversals, etc.). File CMP-08 on time.

Filing process

1. Login to gst.gov.in → Returns Dashboard → Select Quarter
2. Click PREPARE ONLINE for CMP-08
3. Enter:
   • Outward supply turnover (Box 1)
   • Inward supplies attracting RCM (Box 2)
   • Tax calculated auto by system
4. Pay tax via challan (electronic cash ledger top-up if needed)
5. Click PROCEED TO FILE
6. Sign with EVC (or DSC for companies)
7. ARN generated; download acknowledgment

Common errors

1. Interstate sales — Composition dealers cannot make interstate outward supply. If you have inadvertent interstate sale, composition election is at risk.
2. Missing RCM — GTA, legal services, director services under RCM apply even to composition. Pay tax on these.
3. Exempt supplies turnover — Don't add exempt supplies to taxable turnover. Composition rate applies only on TAXABLE supply.
4. Late challan payment — Cash ledger must be funded before CMP-08 submission. Plan payment 1-2 days before deadline.