How to file CMP 08  Return: Due Date | Eligibility | Penalties

CBIC has separated taxpayers across the country, and there are particular business persons who have been given the option to opt for a simplified procedure of compliance under GST. The option is available if you opt for composition scheme under section 10 of the CGST Act 2017 or benefit of Notification NO. 2/2019-dated 7th March 2019-Central Tax Rate. If you are one of the specified persons, then you need to furnish Form CMP-08 on a quarterly basis. 

1.  About Form CMP-08

A challan/statement through which composition taxpayers declare the details or summary of their self-assessed tax payable in a certain quarter.CMP-08 also uses as a challan to pay your tax return. For composition taxpayers quarterly return needs to file in CMP-08 and annual return through the revised format of Form GSTR-4.

2. Who can furnish CMP-08?

If you have registered as a composition taxpayer, then you need to file your return in CMP-08 in every quarter. There are two types of taxpayers who are registered under the scheme:

1. If you are a supplier and at the same time are a manufacturer or a retailer with an annual turnover of up to Rupees 1.5 crores, then you can opt under the composition scheme. But there are specific industries that cannot come under the scheme,

• Producer of Ice cream, Tobacco, or Pan Masala.
• Inter-state supplier
• An ordinary taxable person or a non-resident Indian taxable person
• Businesses that supply goods through e-commerce platforms

2. In case of a supplier of services with annual turnover up to Rupees 50,00,000, and successfully fulfill all the mentioned conditions under the Notification No. 2/2019- dated 7th March 2019-Central Tax (Rate).

3. TAX RATES UNDER COMPOSITION SCHEME

Persons opting for payment of tax at concessional rate under the composition scheme are liable to pay GST at the following rate:

4. CONDITIONS FOR AVAILING COMPOSITION SCHEME

1. If a PAN holder registered for more than one GST then Composition Scheme u/s 10 or benefit under N/No 2/2019 should opt for all registrations.

• A registered person opting for composition schemes or N/No. 2/2019 can’t collect tax from the recipient of supplies.
• A person opting for a composition scheme or N/No. 2/2019 shall not be eligible to avail Input Tax credit.
• A person who shall issue a ‘Bill of Supply’ instead of ‘Tax Invoice’. A person selecting for N/No. 2/2019- Central Taxes (Rate) shall define “taxable person paying tax in terms of notification No. 2/2019-Central Tax (Rate) dated 07.03.2019, he is not eligible to collect tax on supplies’ on top of Bill of supply.
• The option of composition scheme shall lapse with effect from the date on which aggregate turnover during an F.Y. exceeds the earlier mentioned limit mentioned i.e Rupees 1.5 Crore.

5. CMP-08: Important dates

A person registered under a Composition scheme or benefit under N/No. 2/2019 is liable to file the following returns:

Composition Taxpayers need to furnish CMP-08 on a quarterly basis. The due date to file the return is generally the 18th of the next month for the following quarter in a particular financial year.

6. Penalties for Non-Filing or Delay in filing CMP-08 Challan

If a taxpayer fails to furnish a return on or before the due date then he is liable to pay a late fee of rupees 200 per day for every day of delay. Alongside this, the IGST act also claims an equal amount of late fees with CGST and SGST act, which is Rs 200 per day for every day of delay.

However, there is a maximum limit of late fees is Rs. 5000 from the start from the due date to the actual date you file your return.

The NeuSource Startup Minds official the best Business Startup Consultant offer services like Proprietorship Firm Registration, Partnership Firm Registration, OPC Registration, GST Registration, LLP Registration, Trademark registration, FSSAI Licence, ISO Registration

Lalita Sharma

"Ideas are easy but Implementation is Hard”. Neusource is the platform for making a right choice in every aspect of business that helps to grow your business and give assistance in each vital advance which causes your beginning up to create in each most ideal manner