How to File CMP-08 and GSTR-4: Composition Scheme Returns

Taxpayers under the Composition Scheme file two returns: CMP-08, a short quarterly statement-cum-challan, and GSTR-4, an annual return. They do not file GSTR-1 or GSTR-3B. This walkthrough covers both.

CMP-08 — the quarterly statement

CMP-08 is due on the 18th of the month after each quarter. It is a single short form through which you self-assess and pay the quarter's tax.

Step 1 — Open the form

Log in at gst.gov.in and go to Services → Returns → Returns Dashboard. Select the Financial Year and the quarter, then click Search. On the Statement for payment of self-assessed tax CMP-08 tile, click Prepare Online.

Step 2 — Fill Table 3

Table 3 is the whole form. Enter, for the quarter:

• 3(1) Outward supplies (including exempt) — your total turnover for the quarter, and the tax payable on it at your composition rate.
• 3(2) Inward supplies liable to reverse charge — including any import of services — with the tax payable in cash.
• 3(3) Tax payable — auto-totalled from the rows above.
• 3(4) Interest — if you are paying late.

Composition tax rates: 1% of turnover for traders and manufacturers (0.5% CGST + 0.5% SGST), 5% for restaurants not serving alcohol, and 6% for eligible service providers under the special composition for services. Reverse-charge tax is always additional and paid in cash.

Step 3 — Pay and file

Click Save, then Proceed to File. If the electronic cash ledger does not cover the tax, the portal prompts you to Create Challan for the shortfall — pay it by net banking, NEFT/RTGS or over-the-counter. Then File CMP-08 with DSC or EVC. An ARN is generated.

GSTR-4 — the annual return

GSTR-4 is due 30th June following the end of the financial year. It consolidates the year and reconciles it against the four CMP-08 statements already filed.

Step 1 — Open and review the auto-data

Returns Dashboard → select the full financial year → on the Annual Return GSTR-4 tile click Prepare Online. Table 5 shows the tax already paid through your CMP-08 filings — check it is complete.

Step 2 — Inward supplies (Tables 4A to 4D)

Step 3 — Outward supplies (Table 6)

Table 6 must be filled even though CMP-08 already carried the tax. Declare the year's outward supplies and inward reverse-charge supplies rate-wise, with tax. This is where the annual liability is computed. Leaving Table 6 blank is the single most common GSTR-4 mistake — it creates a negative liability entry equal to the CMP-08 tax, which then wrongly reduces a future period's payment.

Step 4 — Reconcile, pay any difference, file

The portal compares Table 6 (annual liability) with Table 5 (CMP-08 already paid). If Table 6 is higher, the difference is payable now — create a challan and pay. Then check Table 8 for any late fee, pay it, Preview the return, and File GSTR-4 with DSC or EVC.

Common problems

Key takeaways

• CMP-08 is quarterly (18th of the next month); GSTR-4 is annual (30th June after the FY).
• Composition taxpayers do not file GSTR-1 or GSTR-3B.
• Always fill Table 6 of GSTR-4 with rate-wise outward supplies, even though CMP-08 already paid the tax — skipping it causes a negative-liability error.
• Reverse-charge tax is extra and always paid in cash, in both CMP-08 and GSTR-4.
• Rates and late-fee caps change by notification — verify against gst.gov.in when you file.