CMP-08 Due Dates and Penalties for Composition Taxpayers

The GST Composition Scheme was introduced to significantly reduce the compliance burden for small businesses. Instead of filing monthly GSTR-1 and GSTR-3B returns, composition taxpayers file a simple quarterly statement known as Form CMP-08.

However, fewer returns do not mean you can ignore the Due Dates Calendar. Missing the CMP-08 deadline carries penalties, though the structure differs slightly from regular taxpayers.

What is Form CMP-08?

Form CMP-08 is a “Statement for payment of self-assessed tax.” Unlike regular taxpayers who compute complex Input Tax Credit (ITC) equations, composition taxpayers pay a flat percentage of their turnover out of their own pocket (they cannot collect GST from customers, nor can they claim ITC).

• Traders and Manufacturers: 1% (0.5% CGST + 0.5% SGST)
• Restaurants (not serving alcohol): 5% (2.5% CGST + 2.5% SGST)
• Service Providers: 6% (3% CGST + 3% SGST)

(Note: Since you cannot charge GST, you do not need to use a GST Calculator to add tax to your invoices. Your invoices must be titled “Bill of Supply” instead of “Tax Invoice”).

The CMP-08 Due Date

CMP-08 must be filed every quarter.

• Due Date: The 18th of the month succeeding the quarter.
• Quarter 1 (Apr-Jun): Due by July 18th.
• Quarter 2 (Jul-Sep): Due by October 18th.
• Quarter 3 (Oct-Dec): Due by January 18th.
• Quarter 4 (Jan-Mar): Due by April 18th.

Penalties and Interest for Late CMP-08

1. Late Fees

Historically, the GST portal did not automatically calculate a per-day late fee for filing CMP-08 late (unlike GSTR-3B). However, the late fee is technically absorbed when you file the annual return (GSTR-4). The late fee for GSTR-4 is capped at ₹500 for NIL returns and ₹2,000 for regular returns.

2. The 18% Interest

If you miss the 18th deadline and fail to deposit the self-assessed tax, you must pay 18% per annum interest on the delayed payment amount. Since composition dealers cannot claim ITC, the entire tax amount is paid in cash, meaning the 18% is calculated on the full liability.

You can estimate this interest utilizing our Late Fee Calculator by entering your tax amount in the “paid in cash” field.

Crucial Restrictions

Remember, as a composition dealer:

1. You cannot make inter-state sales of goods (you can only sell within your state).
2. You cannot supply goods through an e-commerce operator who collects TCS.
3. You must mention “Composition taxable person, not eligible to collect tax on supplies” on every Bill of Supply.

Always perform a GSTIN Validator check on your suppliers, even though you can’t claim ITC, to ensure you are dealing with legitimate businesses. Keeping track of your GST Due Dates ensures you enjoy the benefits of the composition scheme without the headache of notices.