GST composition scheme returns are a quarterly statement of tax paid (CMP-08) and one annual return (GSTR-4), in place of monthly GSTR-1 and GSTR-3B. The scheme under section 10 of the CGST Act lets a small business pay a fixed percentage of turnover, with no input tax credit. We prepare and file both returns for you.
Section 10 of the CGST Act lets eligible small taxpayers pay GST as a fixed percentage of their turnover instead of working out tax on every sale. In return they file less: a statement of tax paid every quarter in Form GST CMP-08 and an annual return in Form GSTR-4 (Rule 62), and no monthly GSTR-1 or GSTR-3B.
The limit is tested against turnover in the preceding financial year.
Within the limit: Turnover in the preceding financial year up to the limit for your type of supply, counted across all registrations under the same permanent account number.
Composition taxpayer / Regular taxpayer
Both are filed on the GST portal. There is no government filing fee.
GST registration certificate
Issuing a tax invoice: A composition taxpayer issues a bill of supply that says "composition taxable person, not eligible to collect tax on supplies" and does not add GST to the price.
There is no government fee for filing. Any tax, interest or late fee you owe is paid to the government and is separate. We confirm the exact amount before filing. GST is extra on our fee.
Accountant-managed filing: Accountants prepare and file CMP-08 and GSTR-4 on the GST portal.
A statement of tax paid in Form CMP-08 every quarter and an annual return in Form GSTR-4. There is no monthly GSTR-1 or GSTR-3B.
On turnover in the State: 1% for manufacturers and traders, 5% for restaurant services and 6% for other service providers under section 10(2A). Each rate is the CGST half plus an equal State tax half (Rule 7).
₹1.5 crore in the preceding financial year for manufacturers, traders and restaurants, and ₹50 lakh for other service providers. Some States have a different limit for goods; we check yours.
No. A composition taxpayer also cannot collect tax from customers, so it issues a bill of supply, not a tax invoice.
No. The scheme is not open to a business that supplies to other States, or through e-commerce operators.
By filing Form CMP-02 on the GST portal before the financial year starts, and dealing with stock credit in Form ITC-03 within 60 days of the start of the year. The option then continues while you meet the conditions.
File Form CMP-04 before the date you want to leave. If you stop meeting a condition, such as crossing the limit, file CMP-04 within seven days; tax under section 9 applies from that day. A stock statement in Form ITC-01 follows within 30 days.
CMP-08 by the 18th of the month after each quarter. GSTR-4 by 30 June after the financial year, from FY 2024-25. Check the portal return calendar for any extension.
Yes. A quarter with no sales still needs a nil CMP-08, and the year still needs GSTR-4.
Interest applies on tax paid late, and unfiled returns can lead to cancellation proceedings. We file pending periods oldest first; see our pending returns page.
Our professional fee starts at ₹1,999 plus GST. The tax you owe, and any interest or late fee, is paid to the government and is separate. StampMitra is a filing assistance platform; it is not the GST department.