How to Pay GST Liability in CMP-08 (2026): Composition Scheme Payment Guide
If your business is registered under the GST composition scheme, your quarterly compliance revolves around a single form: CMP-08. It is a statement-cum-challan used to declare your turnover for the quarter and pay the self-assessed tax at the low composition rate. This 2026 guide explains what CMP-08 is, who files it, the applicable rates, the step-by-step payment process on the GST portal, the due date, and the late fee for delays.
What is Form CMP-08?
CMP-08 is a quarterly statement-cum-challan that a composition taxpayer uses to declare the summary of self-assessed tax payable for a quarter and to make the payment. It replaced the earlier quarterly return system for composition dealers, simplifying their compliance to one form every three months, plus one annual return (GSTR-4).
In short, CMP-08 is how a composition dealer pays tax each quarter, while GSTR-4 is the annual summary filed once a year.
Who needs to file CMP-08?
CMP-08 must be filed by every taxpayer registered under the composition scheme, which includes:
- Composition dealers in goods (manufacturers and traders) with turnover up to Rs 1.5 crore (Rs 75 lakh in special category states).
- Composition service providers under the special scheme for services, with turnover up to Rs 50 lakh.
Even if there is no tax liability for a quarter, a composition dealer must still file a nil CMP-08. Filing is mandatory as long as the registration is active under the scheme.
Composition scheme tax rates
The tax paid through CMP-08 is a small percentage of turnover, not the regular GST rate. The composition rates are:
| Type of business | CGST | SGST | Total |
|---|---|---|---|
| Manufacturers & traders (goods) | 0.5% | 0.5% | 1% of turnover |
| Restaurants (not serving alcohol) | 2.5% | 2.5% | 5% of turnover |
| Service providers (special scheme) | 3% | 3% | 6% of turnover |
A key point: composition dealers cannot collect GST from customers and cannot claim input tax credit. The composition tax is a cost borne by the business, which is why the rates are kept low.
Due date for CMP-08
CMP-08 is due on the 18th of the month following the end of each quarter. The standard schedule is:
- April to June quarter: due 18 July
- July to September quarter: due 18 October
- October to December quarter: due 18 January
- January to March quarter: due 18 April
Step-by-step: how to pay GST liability in CMP-08
The process is entirely online on the GST portal.
- Log in to the GST portal (gst.gov.in) with your credentials.
- Go to Services > Returns > Statement/Returns and select CMP-08 for the relevant financial year and quarter.
- Click Prepare Online. In Table 3, enter the summary of self-assessed liability – your outward supplies (turnover), any inward supplies attracting reverse charge, and the tax and interest payable.
- The portal computes the total tax. Click Save and then proceed to payment.
- Check the cash ledger balance. If there are insufficient funds, create a challan under Services > Payments > Create Challan and pay via net banking, NEFT/RTGS, UPI or over the counter.
- Once the cash ledger has enough balance, offset the liability and File CMP-08 using DSC or EVC.
- An Acknowledgement Reference Number (ARN) is generated on successful filing. Save it for your records.
Remember that composition tax is always paid in cash (through the electronic cash ledger), since input tax credit cannot be used to offset it.
Late fee and interest for delayed CMP-08
Missing the due date has consequences:
- Late fee: Rs 50 per day of delay (Rs 25 CGST + Rs 25 SGST), and Rs 20 per day (Rs 10 + Rs 10) for a nil statement, subject to the prescribed maximum cap.
- Interest: 18% per annum on the tax paid late, calculated from the due date to the date of actual payment.
Consistent delays can also affect your eligibility to continue under the composition scheme, so timely quarterly payment matters.
CMP-08 vs GSTR-4
These two forms work together but serve different purposes:
- CMP-08: quarterly statement-cum-challan to pay tax, due on the 18th after each quarter.
- GSTR-4: annual return summarising the year’s turnover and tax, due by 30 June following the financial year.
A composition dealer therefore files four CMP-08 statements and one GSTR-4 each year.
The composition scheme keeps compliance light, but the forms and cash-payment rules still trip up many small businesses. If you would like help filing CMP-08 accurately and on time, or deciding whether the composition scheme suits you, our team can manage your GST registration and compliance end to end.
Frequently asked questions
Is CMP-08 a return or a challan?
It is a statement-cum-challan. It serves both to declare your self-assessed quarterly tax and to pay it. The detailed annual summary is filed separately in GSTR-4.
Do I need to file CMP-08 if I had no sales?
Yes. A nil CMP-08 must still be filed for any quarter with no turnover or tax. Failing to file even a nil statement attracts a late fee.
Can I use input tax credit to pay CMP-08 liability?
No. Composition dealers cannot claim input tax credit, so the composition tax must be paid entirely in cash through the electronic cash ledger.
What is the due date for CMP-08?
CMP-08 is due on the 18th of the month following each quarter, that is 18 July, 18 October, 18 January and 18 April for the respective quarters.
What happens if I file CMP-08 late?
A late fee of Rs 50 per day (Rs 20 for nil) applies up to the prescribed cap, along with interest at 18% per annum on any tax paid after the due date.
