How to File GSTR-4 and CMP-08 for Composition Taxpayers

How to File GSTR-4 and CMP-08 for Composition Taxpayers

If you opted for the GST composition scheme because you wanted simpler compliance and lower tax rates, you are on the right track, but "simpler" does not mean "no paperwork." Composition taxpayers still have two recurring obligations: a quarterly payment through CMP-08 and an annual return through GSTR-4. Miss either one, and the simplicity you signed up for quickly turns into late fees and notices.

Many small business owners get confused about which form does what, and end up either skipping CMP-08 (thinking GSTR-4 covers everything) or filing GSTR-4 incorrectly because they never reconciled it against the CMP-08 payments made through the year. This guide clears up both forms in one place so you know exactly what to file, when, and how.

We regularly see composition taxpayers treat these filings as an afterthought precisely because the composition scheme was chosen for its simplicity. Ironically, that mindset is what causes most of the missed deadlines and mismatches we get asked to fix. A few minutes of quarterly discipline is all it really takes to avoid that.

What Are GSTR-4 and CMP-08, and Why Do They Matter

CMP-08 is a quarterly statement-cum-challan used by composition taxpayers to declare their self-assessed tax liability for the quarter and pay it. It is not a full return — it is a summary declaration of turnover and tax payable, used specifically to make the quarterly tax payment.

GSTR-4 is the annual return that composition taxpayers file once a year, consolidating all four quarters of the financial year. It includes details of turnover, inward supplies (including those from unregistered or registered suppliers), tax payable, and tax paid — essentially tying together everything reported via CMP-08 into one annual statement.

Together, these two filings replace the monthly GSTR-1/GSTR-3B cycle that regular taxpayers go through, which is exactly the compliance relief the composition scheme is designed to offer. But the trade-off is that any inconsistency between your four CMP-08 payments and your final GSTR-4 becomes very visible to the department, since it is all reconciled in one annual filing.

It is worth remembering why the composition scheme exists in the first place: it is meant for small businesses that want predictable, turnover-linked tax payments instead of invoice-level GST computation on every sale. That simplicity is genuinely useful, but it comes with its own discipline — you still need to track turnover carefully every quarter, because CMP-08 is a self-assessed declaration, not something the portal calculates for you from invoices the way GSTR-3B partially does for regular taxpayers.

Who Must File and the Due Dates

Any business registered under the GST composition scheme must file both CMP-08 (quarterly) and GSTR-4 (annually). This typically includes small traders, manufacturers, and restaurant service providers who opted for composition instead of regular GST registration, provided they remain within the eligibility turnover limit for the scheme.

Eligibility turnover limit: The composition scheme is available to businesses below a specified aggregate turnover threshold, which differs for goods suppliers, restaurant service providers, and other eligible service providers under the scheme. Because this threshold has been revised over the years and can vary by state and category, please verify the current limit applicable to your business type before assuming you qualify.

CMP-08 due date: Generally due within 18 days from the end of each quarter (for example, the quarter ending June is typically due by mid-July), though the exact date is notified each quarter and can shift. Always check the current due date on the GST portal.

GSTR-4 due date: Generally due by 30th April following the end of the financial year, though extensions have been granted in some years. Verify the current due date before your filing window closes.

Documents and Data Required

Before filing either form, gather the following:

• Quarterly turnover figures, broken down by outward supply value for the relevant quarter or year
• Details of inward supplies from registered and unregistered dealers, since composition taxpayers must report purchase-side data too
• Tax rate applicable to your category (goods, restaurant service, or other eligible services under composition)
• Bank statements and sales records to cross-verify declared turnover
• Previous CMP-08 filing acknowledgments for all four quarters of the year (needed specifically for GSTR-4 reconciliation)
• Any RCM (reverse charge mechanism) liability details, where applicable
• Details of any advance tax paid during the year against final liability
• GSTIN and registration certificate details to confirm continued composition status through the year

Keeping a running quarterly file of CMP-08 payments makes the annual GSTR-4 filing dramatically easier, since you are simply consolidating four quarters instead of reconstructing them from scratch in April.

Step-by-Step: Filing CMP-08 on the GST Portal

1. Log in to the GST portal with your GSTIN credentials.
2. Navigate to Services > Returns > Returns Dashboard, then select the relevant financial year and quarter.
3. Select "CMP-08" from the list of applicable returns for a composition taxpayer.
4. Enter details of outward supplies, inward supplies attracting reverse charge, and other applicable tax liability for the quarter.
5. Verify the auto-calculated tax liability (CGST, SGST/UTGST as applicable) based on your composition tax rate.
6. Pay the tax due using the available cash balance in your electronic cash ledger, or generate a challan to deposit funds first if the balance is insufficient.
7. Preview the statement, confirm all figures are accurate, and submit.
8. File using DSC or EVC as applicable to your business structure.
9. Download the acknowledgment and file it away — you will need all four quarters' acknowledgments when preparing GSTR-4.

Step-by-Step: Filing GSTR-4 on the GST Portal

1. Log in to the GST portal and navigate to Services > Returns > Annual Return.
2. Select "GSTR-4" for the relevant financial year.
3. Choose "Prepare Online" (or use the offline utility if you prefer working in Excel first).
4. Fill in summary of outward supplies and turnover for the entire financial year.
5. Fill in details of inward supplies, including purchases from registered and unregistered suppliers, and any liability under reverse charge.
6. Reconcile the tax paid as per your four CMP-08 filings against the annual liability computed in GSTR-4 — this is the step where most discrepancies surface.
7. Declare any additional tax payable, if your quarterly CMP-08 payments fell short of the final annual liability, and pay the difference along with applicable interest.
8. Preview the return in PDF format and check every table carefully, since this return generally cannot be revised once filed.
9. File using DSC or EVC, then download the filed acknowledgment for your records.

Fees, Late Fees & Interest in 2026 (Please Verify Current Rates)

Both CMP-08 and GSTR-4 attract late fees for delayed filing, and any shortfall in tax payment attracts interest. Since these figures change periodically through government notifications, please verify current rates before you calculate what is due. Broadly:

• CMP-08 late fee is typically charged per day of delay, split between CGST and SGST, often with an upper cap.
• GSTR-4 late fee similarly applies per day of delay, and in some years a reduced or capped late fee has been notified specifically for composition taxpayers with nil or low turnover — check if this applies to your situation.
• Interest on delayed tax payment is charged from the original due date at the rate notified under GST law.

Do not assume last year's late fee structure still applies — composition scheme relief measures have been revised multiple times, so confirm current figures before paying.

Common Mistakes Composition Taxpayers Make

• Forgetting to file CMP-08 every quarter, assuming the annual GSTR-4 is the only real obligation.
• Not reconciling all four CMP-08 filings before starting the GSTR-4 annual return, leading to mismatches.
• Missing reverse charge liability on inward supplies from unregistered dealers.
• Applying the wrong composition tax rate for their business category (goods vs restaurant service vs other services).
• Exceeding the eligibility turnover limit during the year without switching to regular registration in time.
• Ignoring interest on shortfalls discovered at the annual return stage.
• Filing GSTR-4 in a rush close to the deadline, without leaving room to fix data pulled from four separate quarters.
• Not retaining CMP-08 acknowledgments, making annual reconciliation harder.
• Mixing up composition tax rates when a business has both goods and restaurant service components, since different rates can apply to different parts of the same business.
• Not tracking eligibility conditions continuously, such as inadvertently supplying goods or services that are not permitted under the composition scheme, which can jeopardise the scheme's benefits altogether.

Frequently Asked Questions

Do I need to file both CMP-08 and GSTR-4, or just one?

Both. CMP-08 is your quarterly tax payment declaration, and GSTR-4 is the annual consolidated return. They serve different purposes and are both mandatory for composition taxpayers.

What happens if I miss a CMP-08 due date?

You become liable for a late fee per day of delay plus interest on the unpaid tax. Persistent non-filing can also affect your composition status, so it is best to file even a nil CMP-08 on time. Verify current late fee rates before paying.

Can I file GSTR-4 if I missed one or more CMP-08 filings during the year?

It is possible in principle, but any unpaid liability from missed quarters will need to be captured and paid in GSTR-4 along with applicable interest. It is far cleaner to stay current on CMP-08 each quarter.

Is there a nil return option for CMP-08 or GSTR-4?

Yes, composition taxpayers with no turnover or transactions in a period can generally file a nil CMP-08 or nil GSTR-4, though the exact simplified process may vary. Verify current portal procedure.

What if my turnover crosses the composition scheme limit during the year?

You are generally required to transition out of the composition scheme and into regular GST registration once you cross the applicable threshold. Special transition provisions apply for reporting the split period — consult a professional promptly if this happens.

Can GSTR-4 be revised after filing?

Generally, once filed, GSTR-4 cannot be revised, which is why reconciling all four CMP-08 filings carefully before submission is essential.

Do composition taxpayers need to report purchases in GSTR-4?

Yes, GSTR-4 requires details of inward supplies from both registered and unregistered suppliers, along with any reverse charge liability, unlike a simple turnover-only declaration.

What if I have paid excess tax through CMP-08 during the year?

Any excess payment is generally adjusted or reflected while filing GSTR-4, but the exact refund or adjustment mechanism should be verified with a professional based on current rules, since this is not always automatic.

Can a service provider opt for the composition scheme, or is it only for goods suppliers?

Certain categories of service providers, along with restaurant services, have been permitted to opt into composition-linked schemes in various periods, generally subject to their own turnover threshold and conditions that differ from the goods-based composition scheme. Verify current eligibility carefully before assuming your service business qualifies.

Unsure whether your CMP-08 payments match what you should be declaring in GSTR-4, or want someone to check your composition eligibility itself? Legal Suvidha offers a free compliance check to review your quarterly and annual GST filings before submission.

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