Form CMP-08 was introduced in April 2019 and is effective for the fiscal year 2019-2020. Composition dealers were given a new tax payment process in April 2019 to make compliance easier for them. It has taken the place of the previously filed quarterly GSTR-4 by composition dealers.
A composition dealer will declare the details or summary of their self-assessed tax payable for a given quarter on Form CMP-08, a special statement-cum-challan. It also serves as a challan for tax payments.
A composition dealer is one who has been registered under the composition scheme for both goods and services supply. In addition to Form CMP-08, a composition dealer must file an annual return using the revised format of Form GSTR-4 by the 30th of April following the end of a fiscal year.
To deposit payments every quarter, a taxpayer who has chosen the composition scheme must file Form CMP-08. Two types of taxpayers use the CMP-02 (Opt into Composition scheme):
a. Manufacturers and retailers with an annual aggregate turnover of up to Rs.1.5 crore (Rs.75 lakhs for special category States except for Jammu and Kashmir and Uttarakhand) in the previous financial year, with the exception of:
1. Ice cream and other edible ice (whether or not containing cocoa), pan masala, and tobacco and tobacco substitutes are all manufactured by this company.
2. A person who manufactures interstate supplies.
3. A person who sells goods that are exempt from the GST.
4. A non-resident taxable person or a casual taxable person.
5. Businesses that sell their products through an e-commerce platform.
b. Suppliers of services who meet the criteria outlined in Notification Number 2/2019 Central Tax (Rate) dated 7 March 2019 and had an aggregate annual turnover of up to Rs.50 lakh in the previous financial year are eligible.
If a taxpayer fails to submit his or her statement on or before the due date, he or she will be charged a late fee of Rs.200 per day for each day that the statement is late. CGST is Rs.100 per day, while SGST is Rs.100 per day. The IGST Act sets a penalty equal to the CGST and SGST Act late fees, i.e. Rs.200 per day of delay. From the start of the due date to the actual filing date of the taxpayer, late fees will be limited to Rs.5,000.
Furthermore, if the CMP-08 is not filed for two consecutive quarters, the e-way bill generation is halted. Taxpayers must submit Form GST to the jurisdictional tax official in order to be unblocked. They might also have to file all outstanding forms from previous quarters.
Step 1- A taxpayer has to enter his/her GSTIN details.
Step 2- Once the GSTN number is entered, primary information such as the legal name and trade name will be auto-filled. The same statement will be updated for the ARN (Application reference number) and date of filing, once the payment is done.
Step 3-The information/summary of the self-assessed tax liability will be found in the third table of the form. A taxpayer will be required to provide information about outward supplies on which tax is due, as well as inward supplies on which tax is due on a reverse charge and imports. Aside from that, the tax due on these items, as well as any interest paid (if any), should be reported.
Step 4- Finally, a taxpayer must sign the form to indicate that he or she has verified all of the information entered.
The steps to file GST CMP-08 (self-assessed tax payment) on the GST portal are as follows:
1. Log in to the GST portal and go to the CMP-08 tile on the return dashboard.
2. Choose the relevant financial year and the relevant quarter's return filing period. Click on 'SEARCH' to continue. For the CMP-08 form, click 'PREPARE ONLINE' (payment of self-assessed tax).
3. Complete table 3 of the CMP-08 form with information about your tax liability.
4. Fill in the summary figures for the value of supplies and tax due over a three-month period. In the event that the CMP-08 is not received by the due date, enter the interest amount. Check the box next to 'File Nil GST CMP-08' if the taxpayer:
a. Has no outward supplies during the return period selected, so no tax is due.
b. Due to the lack of inward supplies on which reverse charge tax is payable, there is no output tax liability (including import of services).
c. There are no other tax obligations.
5. Click on 'SAVE' to save the details entered.
6. Preview draft CMP-08 before making the tax payment
7. Click on 'PREVIEW DRAFT GST CMP-08' to review the accuracy of the details entered.
8. Pay the liability and submit the CMP-08 form.
9. If there is insufficient cash in the cash ledger, make payment using the cash balance left in the electronic cash ledger OR click on 'Create Challan' to choose either NetBanking or NEFT. Check the box next to the declaration statement to confirm the information submitted. Use an electronic verification code (EVC) or a digital signature to submit the CMP-08 (DSC). You will receive an email confirming the submission of CMP-08 (payment of self-assessed tax). When CMP-08 is successfully filed, GSTN generates an ARN. A text message and an email are also sent to the taxpayer's registered phone number and email address.