GST composition scheme taxpayers to file in Form GST CMP-08

The composition scheme taxpayers are relieved as the Finance Ministry has allowed composition dealers to file a self-assessed tax return (a single page statement) in Form GST CMP-08 of the Central Goods and Service Tax Rules, 2017, by the 18th day of the month after each quarter. This quarter, the last date to file CMP-08 is 18 July 2019.

Previously, businesses were filing tax returns every quarter in GSTR-4, which consisted of seven pages.

CMP-08, a statement cum challan, was introduced in April 2019 to make it applicable from the financial year 2019-2020. This is a welcome move as it simplified the entire filing process and replaced the GSTR-4.

Additionally, the Central Board of Indirect Taxes and Customs (CBIC) has redesigned the GSTR-4 of the Central Goods and Services Tax Rules, 2017, to be filed by 30th April for every financial year by the composition dealers.

Also Read: The highs and lows: Two years of GST

The composition scheme can be availed by small traders, service providers and manufacturers. If a taxpayer has a turnover of up to Rs 1.5 crore (Rs 75 lakh for special category States), he/she will have to pay 1% GST calculated on turnover. However, service providers with a turnover of up to Rs 50 lakh will have to pay 6% GST.

The CMP-08 will require details such as outward supplies, taxes paid, inward supplies under reverse charge including taxes payable on imports, and interest payable.

As per the notification, the composition dealers will file the April-June quarter returns this month. 

Currently, there are 20 lakh businesses under the composition scheme from a total of 1.21 crore businesses registered under GST.

The GSTR-9A is also an annual return that must be filed once a year by businesses under the composition scheme for a relevant financial year. Any additional tax liability that is not declared in Form GSTR-4 can be shown in Form GSTR-9A.

However, the applicability of the two annual returns – GSTR-4 and GSTR-9A – will be irrational. Hence, either of the two can be scrapped.

With the CMP-08 filing just around the corner, it is surprising to see that the API on the GST portal is not updated. Hence, taxpayers are not being able to file their CMP-08. This may also mean that the due date for filing may get extended.

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