Composition Scheme Returns (CMP-08 & GSTR-4)
Quarterly statement filing (CMP-08) and Annual Return filing (GSTR-4) for small retailers, manufacturers, restaurants, and service providers registered under the GST Composition Scheme (Section 10).
1. Statutory Composition Rules (Section 10)
Under Section 10 of the CGST Act, 2017, small taxpayers with turnover up to ₹1.5 Crores (₹50 Lakhs for service providers u/s 10(2A)) can opt for Composition Scheme to pay tax at flat concession rates:
1% Concession Tax
0.5% CGST + 0.5% SGST on turnover.
5% Flat Tax Rate
2.5% CGST + 2.5% SGST on turnover.
6% Concession Tax
3% CGST + 3% SGST on turnover.
Mandatory Composition Restrictions
- • Composition dealers cannot issue Tax Invoices or collect GST from customers.
- • No Input Tax Credit (ITC) can be claimed on inward purchases.
- • Cannot make Inter-State outward supplies or sell goods via E-Commerce operators.
3. Mandatory Data Checklist
Data Required for Composition Filing
- Quarterly Gross Sales Turnover Figures
- Inward Purchase Details from Registered Dealers
- Reverse Charge (RCM) Purchase Invoices
- GST Portal Credentials
4. Step-by-Step Filing Timeline
Step 1: Quarterly Statement CMP-08 (18th of month following quarter)
Calculating flat tax liability on total turnover and submitting Form CMP-08 on portal.
Step 2: Annual Return GSTR-4 (30th April following FY)
Submitting consolidated annual return Form GSTR-4 detailing annual turnover and RCM tax payments.
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