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In April 2019, a new tax payment process was prescribed for composition dealers to simplify compliance for them. GST Form CMP-08 was introduced in the month of April 2019 and was made applicable from Financial Year 2019-2020 onwards. It replaces the erstwhile quarterly GSTR-4, which was filed by composition dealers. Further, when a dealer seeks to opt for the Composition Scheme under GST, the government should be intimated about it. It can be done by filing GST CMP-01 or GST CMP-02. In this article, we shall discuss GST Form CMP-02 and CMP-08.
Table of Contents
A composition dealer shall use this Form, which is a special statement-cum-challan, to declare the details regarding or summary of his/her self-assessed tax payable for a given quarter. It also acts as a challan for paying tax.
A composition dealer is a dealer who is registered under the composition scheme laid down for both supply of goods & services.
A taxpayer who seeks to opt for the Composition Scheme for a FY or during the middle of a FY should inform the government about their choice. This is to be done by filing this GST form. If CMP-02 is filed in the middle of the financial year, the rules of the Composition Scheme are applicable from the month immediately succeeding the month in which CMP-02 is filed.
Form CMP-08 has to be filed on a quarterly basis, on or before 18th of the month succeeding the quarter of any specific fiscal year. For instance, the due date of filing CMP-08 for the quarter Jan-Mar 2021 was 18th April 2021.
The due date of filing form CMP-02 to declare eligibility to continue under the composition scheme for upcoming Financial Year 2021-22 was 31st March 2021.
Procedure to file GST form CMP-02-
Step 1 – Login to the GST portal.
Step 2 – Go to ‘Services’, then ‘Registration’, then ‘Application to Opt for composition Levy’.
Step 3 – On this window, read -‘Composition Declaration’ and ‘Verification’ carefully and tick the checkbox. Select the ‘Name of Authorized Signatory’ from the drop-down menu. Also, type the ‘place’ and select ‘save.
Step 4 – If you are a Company/LLP, you have to submit the application with DSC (Digital Signature Certificate). Any other registrant can use any of the 3 methods to submit the return.
Step 5 – A pop up will appear containing the warning. Click on ‘PROCEED’. When the application is submitted, a success message will be displayed. Also, an acknowledgement will be sent to your registered mail id and mobile.
Procedure to file GST form CMP-08-
Step 1 – The taxpayer needs to enter their GSTIN details.
Step 2 – When the GSTIN is entered, primary information like the legal name and the trade name would be auto-filled. The same statement shall be updated for the ARN and the filing date once the payment is completed.
Step 3– The third table of the form shall contain the information/summary of the self-assessed tax liability. The taxpayer would have to provide details like outward supplies on which tax is payable by him, including inward supplies on which tax is payable on reverse charge and cases of imports. Moreover, the tax payable on these plus the interest paid (if any) has to be reported.
Step 4– In the final step, the taxpayer should confirm that they verified all details that have been entered by signing the form.
The information stated above should be followed while filing GST form CMP-02 and CMP-08 on the GST portal. It may be noted that penalty may be levied in case where the GST form is not filed within the prescribed due date. Taxpayers who have registered as composition taxable persons through Form REG-01 or taxpayers who opted for composition levy through Form CMP-02, should file Form GST CMP-08.
Akash Dubey is a Law Graduate and works as an
Advisor at Enterslice. He is proficient in Legal
and Financial Advisory. His expertise in the
skills of Legal and Financial Research is an aid
to his strengths as an Advisor.
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