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.
Compare Composition vs Regular GST Taxes
Calculate how much tax you owe under the 1%, 5%, or 6% composition rate vs standard 18% GST with full ITC.
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% of turnover (0.5% CGST + 0.5% SGST)
- Restaurants (not serving alcohol): 5% of turnover (2.5% CGST + 2.5% SGST)
- Service Providers: 6% of turnover (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 Quarterly Filing Calendar (FY 2025-26 & 2026-27)
CMP-08 must be filed every quarter by the 18th of the month following the quarter’s end:
| Quarter | Period Covered | Statutory Due Date | What Needs to be Paid |
|---|---|---|---|
| Q1 | April 1 – June 30 | July 18 | Self-assessed tax on Q1 turnover |
| Q2 | July 1 – September 30 | October 18 | Self-assessed tax on Q2 turnover |
| Q3 | October 1 – December 31 | January 18 | Self-assessed tax on Q3 turnover |
| Q4 | January 1 – March 31 | April 18 | Self-assessed tax on Q4 turnover |
In addition to quarterly CMP-08, composition dealers must file an annual return in Form GSTR-4 by April 30th following the close of the financial year.
Worked Example: Calculating CMP-08 Quarterly Tax
Suppose a retail trader registered under the composition scheme has the following figures for Q1 (April to June):
- Total taxable sales turnover: ₹15,00,000
- Inward supplies attracting RCM (e.g. transport freight): ₹50,000 @ 5% GST = ₹2,500
Tax Liability Computation:
- Composition Tax on Outward Sales (1%):
- CGST (0.5%): ₹7,500
- SGST (0.5%): ₹7,500
- Subtotal = ₹15,000
- Reverse Charge Mechanism (RCM) Liability:
- CGST (2.5%): ₹1,250
- SGST (2.5%): ₹1,250
- Subtotal = ₹2,500 (Note: RCM must be paid at standard applicable rate in cash, not composition rate)
- Total Cash Payable in CMP-08: ₹17,500
You can compute your exact liabilities using our GST Composition Scheme Calculator.
Penalties and Interest for Late CMP-08
1. Late Fees
Historically, the GST portal did not automatically calculate a per-day late fee on filing CMP-08 late (unlike GSTR-3B). However, any delay is accounted for when filing the annual return (Form GSTR-4). The late fee for GSTR-4 is capped at ₹500 for NIL returns and ₹2,000 for regular returns.
2. Mandatory 18% Interest Under Section 50
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 net liability from the day after the due date until the date of payment.
You can estimate this interest utilizing our GST Interest Calculator and Late Fee Calculator.
Crucial Restrictions
Remember, as a composition dealer:
- You cannot make inter-state sales of goods (you can only sell within your state).
- You may supply goods through an e-commerce operator under the special procedure in Notification No. 36/2023-Central Tax. The operator must block inter-state supplies, collect TCS, and report the sales; check the marketplace’s current onboarding requirements.
- 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.
Frequently Asked Questions (FAQ)
What is the due date of Form CMP-08?
Form CMP-08 is due by the 18th of the month following each quarter: 18th July (Q1), 18th October (Q2), 18th January (Q3), and 18th April (Q4).
CMP-08 late fee kitna lagta hai agar date nikal jaye?
CMP-08 par monthly filing ke time portal automatic late fee nahi lagata, lekin quarterly tax par 18% p.a. interest (Section 50) mandatory lagta hai. Saal ke ant me annual return GSTR-4 file karte waqt late fee absorb hoti hai, jo regular returns ke liye maximum ₹2,000 tak capped hai.
Can I file a NIL CMP-08 statement?
Yes. If you had zero turnover and zero inward supplies subject to RCM in a quarter, you can file a Nil Form CMP-08 directly on the GST portal or via SMS.
What is the difference between CMP-08 and GSTR-4?
CMP-08 is a quarterly tax payment statement filed 4 times a year to deposit tax. GSTR-4 is the comprehensive annual return for composition taxpayers filed once a year by 30th April following the close of the financial year.