The centre worked towards GST for several years before finally introducing it. The idea was to simplify taxes for the industry and common man. Apart from just simplifying it, the rates that everyone’s paying is comparatively lower.
Ever since the introduction of GST in India the centre is trying to simplify it further. One of the pigments of this simplification is Form CMP 08. What is Form CMP 08? Let us find out all about it in this article.
This article explores the following areas:
- What is Form CMP 08?
- Who should file Form CMP 08?
- When to file CMP 08?
- What happens when you don’t fill the Form CMP 08?
- How to file for Form 08 CMP 08?
Let’s get started!
What is Form CMP 08?
The Form CMP-08, which is a special statement-cum-challan to declare the details or summary of his/her self-assessed tax payable for a given quarter. Additionally it also acts as a challan for making payment of tax.
It is generally done by composition leaders. A vendor who has been enlisted under the creation set down for both supply of goods and services. Notwithstanding Form CMP-08, an arrangement seller will likewise have to record his/her yearly return by means of the overhauled organization of Form GSTR-4 by 30 April following the finish of a particular monetary year. But who should file the Form GSTR-4?
Who Should File Form CMP 08?
All the registered taxpayers paying tax under the provisions of section 10 of CGST Act 2017 or availing benefits of Notification No. 2/2019-Central Tax (Rate) dated 07th March 2019 have been categorized under ‘special category of persons’ by the CBDT.
A special procedure has been laid out by the CBDT via Notification no. 21/2019 – Central Tax dated 23rd April 2019 for such persons to file their tax returns, registered under the composition scheme.
Such specified persons are required to furnish their return statement with the help of Form GST CMP-08 on a quarterly basis.
There are two types of taxpayers registered using CMP-02
- 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. Here are its exceptions that you must also be aware of.
-Manufacturer of ice cream and other edible ice (whether or not containing cocoa), pan masala, or tobacco and manufactured tobacco substitutes.
-A person making inter-state supplies.
-A person supplying goods which are not taxable under GST Law.
-A casual taxable person or a non-resident taxable person.
-Businesses which supply goods through an e-commerce operator.
- The supplier of services who fulfil the conditions mentioned under the Notification Number 2/2019 Central Tax (Rate) dated 7 March 2019 having the aggregate annual turnover up to Rs.50 lakh in the previous financial year.
When must you file for Form CMP 08 and does it come with a last date? Let us find out the same in the next section of this article.
When to File Form CMP 08?
Form CMP-08 must be filed on a quarterly basis, on or before the 18th of the month succeeding the quarter of any specific fiscal year. For instance, the due date to file CMP-08 for the Jan-Mar 2021 quarter was 18th April 2021.
While this is the given date by when the Form CMP 08 should be filed, what are the repercussions of missing the given date? How about we find out in the next section?
What Happens When You Miss the Due Date?
As we all know, Form CMP-08 must be filed on a quarterly basis, on or before the 18th of the month succeeding the quarter of any specific financial year. There is also a penalty if you miss the due date.
On the off chance that a citizen neglects to outfit his/her assertion at the very latest the due date, the individual will be at risk to pay a late expense of Rs.200 each day for each day of postponement. for example Rs.100 each day under CGST and Rs.100 each day under SGST.
IGST Act recommends a sum equivalent to the late expenses for CGST and SGST Act i.e Rs.200 each day of deferral. Late expense charges will be dependent upon a limit of Rs.5,000 from the beginning of the due date to the real recording date of the citizen.
Besides, in the event that CMP-08 of two back to back quarters are not documented, the e-way charge age gets impeded. For unblocking, citizens need to apply to the jurisdictional expense official in Form GST EWB 05. They may likewise be needed to record all forthcoming structures for past quarters.
How to File for Form CMP 08?
Here are a few simple steps to file Form CMP 08:
Step 1: Update your GSTIN details
A taxpayer has to enter his/her GSTIN details.
Step 2: Information such as the legal name and trade name will be auto-filled
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 and date of filing, once the payment is done.
Step 3: Summary of self-assessed liability
The third table of the form will have information/summary of the self-assessed tax liability. A taxpayer will need to provide details such as outward supplies on which tax is payable by him, including the inward supplies on which tax is payable on a reverse charge and cases of imports. Apart from this, the tax payable on these and the interest paid (if any) should be reported.
Step 4: Verification
In the final step, a taxpayer has to confirm that he/she has verified all the details that have been entered by signing the form.
Told you so, as simple as it gets. Just a few points to remember as a taxpayer.
Points to Remember
- A taxpayer can file a ‘NIL’ return if his/her total tax liability is zero for a given quarter. A Nil CMP-08 can be filed via SMS.
- A taxpayer will be liable to pay interest as well as a penalty in case he/she misses the filing due date.
- Tax liabilities are inclusive of adjustment in relation to advances, credit notes, debit notes or, any rectifications.
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Key Takeaways:
- A composition dealer will use the Form CMP-08, which is a special statement-cum-challan to declare the details or summary of his/her self-assessed tax payable for a given quarter.
- A taxpayer who has opted for the composition scheme has to file CMP-08 in order to deposit payments every quarter.
- The supplier of goods being manufacturers, retailers having an annual aggregate turnover of up to Rs.1.5 crore.
- The supplier of services who fulfil the conditions mentioned under the Notification Number 2/2019 Central Tax (Rate) dated 7 March 2019 having the aggregate annual turnover up to Rs.50 lakh in the previous financial year.
- The pending GSTR-4 quarterly related to FY 2017-18 and 2018-19 has to be filed on or before 31st October 2020.
- CBIC notified the new notification for waiver of interest and a late fee of return monthly or quarterly basis and composition taxpayers.
- You can file Form GST CMP-08 using DSC or EVC
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Rhema Hans
Deskera Content Team
Shikha Samant
Deskera Content Team
