Genesis of CMP 08
The introduction of CMP-08 was during the Financial Year 2019-2020 thereby, replacing the erstwhile quarterly GSTR 4 return for composition dealers. In addition, businesses were required to file tax returns during each quarter through GSTR-4, which had seven pages, the CMP-08 consists only of a single-page statement.
What is CMP 08 & GSTR 4?
Form GST CMP 08 form is a form for declaring the details or summary of self-assessment tax. Further, it is payable for a given quarter by taxpayers who are composition taxable persons or taxpayers who opt for composition levy.
Form GSTR-4 (Annual Return) is a yearly return to be filed once, for each financial year by the taxpayers who opt for the composition scheme during the financial year. Additionally, this is for the Composition scheme for any period during the financial year, from 1st April, 2019 onwards.
Note:
To file a GSTR 4 annual return, the taxpayer needs to file all Form CMP-08 quarterly statements for the applicable period during the relevant financial year.
Who can opt for Composition Scheme?
If the taxpayers fall in either of the following categories, they can opt for Composition Scheme and has to file CMP-08:
– The supplier of services, having the aggregate annual turnover up to Rs 50 lakh in the previous financial year and fulfills the conditions under the Notification Number 2/2019 Central Tax (Rate) on date 7 March 2019, or
– In addition, the supplier of goods being manufacturers, retailers having an annual aggregate turnover of up to Rs.1.5 crore (Rs.75 lakhs for special category States except for Jammu & Kashmir and Uttarakhand) in the previous financial year, except the following:
Who has to file GSTR 4?
All taxpayers who opt for the composition scheme under GST during the financial year have to file Form GSTR-4 (Annual Return). Consequently, this includes a taxpayer
- Firstly, who has opted for the composition scheme since registration and has never opted out subsequently; and
- Secondly, who has opted in for the composition scheme before starting of the financial year; and
- Lastly, who has opted in for composition but subsequently opted out any time during the year.
Who cannot file GSTR-4?
How to opt for Composition Scheme & get your GST Returns filed by TaxHelpdesk
On placement of your order, TaxHelpdesk’s professional team for reviewing documents will check your documents within 24 working hours. Thereafter, there shall be an assignment of Tax Expert, and processing of your order will take place. Further, you also can check the status of the order in your account.
List of Contents of CMP-08
Due dates for filing of CMP-08
Submission of the Form GST CMP-08 is on a quarterly basis. Accordingly, the due date for filing Form GST CMP-08 is 18th of the month succeeding the quarter or as extended by the Government through notification.
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Due date for GSTR-4 Filing
Filing of Form GSTR-4 (Annual Return) is on yearly basis. Thereby, the due date for filing Form GSTR-4 (Annual Return) is the 30th of the month succeeding the financial year. This, however, is subject to extension by the Government from time to time.
Documents required for GSTR-4 filing
– Summary details of outward supplies and inward supplies liable to reverse charge and tax liability
– Details of inter-State supplies made to unregistered persons/composition taxable persons and UIN holders
– Also, details of ITC available, ITC reversal, Net ITC available, Ineligible ITC, etc.
– Summary details of exempt, nil, and non-GST inward supplies
– Details of interest and late fee
– Similarly, details of payment of tax and interest and late fee (if any)
– Additionally, the information about TDS/TCS credit
Consequence of Non-Filing of CMP-08
If the taxpayer opting for composition scheme, fails to furnish requisite return in Form GST CMP-08 within the specific due date, then, he would be liable to pay penalty / late fee of INR 200 per day [INR 100 per day CGST + INR 100 per day SGST] from the due date of filing of return till actual date of filing of the return. Furthermore, late fee charges are subject to a maximum of Rs.5,000 from the start of the due date to the actual filing date of the taxpayer.
If CMP-08 of two consecutive quarters are not filed, then the e-way bill generation gets blocked. Thereby, for unblocking, taxpayers need to apply to the jurisdictional tax official in Form GST EWB 05. Additionally, they may also have to file all pending forms for previous quarters.
List of Contents for GSTR-4
Amount of late fees on late filing of GSTR-4
A late fee of Rs. 200 per day (Rs. 100 CGST + Rs. 100 SGST) is levied, if the GSTR-4 is not filed within the due date. In addition to this, the maximum late fee cannot exceed Rs. 10,000. Further, the maximum late fees shall be Rs. 500 (Rs. 250 CGST + Rs. 250 SGST) in case of NIL returns and Rs. 2000 (Rs. 1000 CGST + Rs. 1000 SGST) in other cases.
Procedure for filing of CMP-08 and GSTR-4
Documents needed for CMP-08 and GSTR-4 filing
– Firstly, details of outward supplies including exempt supplies;
– Secondly, information of inward supplies attracting reverse charge including import if services;
– Lastly, details of tax payable, interest paid, if applicable
FAQs
Filing of Form GST CMP-08 for applicable quarter is mandatory even in cases, where there is no self-assessed liabilities.
No, CMP-08 liabilities can be paid only through cash and not through ITC as Composition taxpayer cannot claim ITC.
Yes, Form GSTR-4 (Annual Return) is required to be filed if you were a composition taxpayer during any part of the financial year. Therefore, filing of GSTR-4 is necessary even on cancellation of GST registration during the relevant financial year.
Nil Form GSTR-4 (Annual Return) can be filed for the Financial year, if you have:
– Not made any outward supply
– Not received any goods/services
– Have no other tax liability to report
– Have filed all Form CMP-08 as Nil
You can file Form GST CMP-08/GSTR-4 using DSC or EVC.
- Digital Signature Certificate (DSC)– Digital Signature Certificates (DSC) are the digital equivalent (that is electronic format) of physical or paper certificates. In addition, a digital certificate can be presented electronically to prove one’s identity, to access information or services on the Internet or to sign certain documents digitally in India, DSC are issued by authorized Certifying Authorities.
Electronic Verification Code (EVC)- The Electronic Verification Code (EVC) authenticates the identity of the user at the GST Portal by generating an OTP. Then, the OTP is sent to the mobile phone number of the registered mobile phone of Authorized Signatory filled in part A of the Registration Application.
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