Understand What are the Returns to be Filed by Composition Scheme in GST. The GST Composition Scheme was introduced to simplify tax compliance for small businesses. Dealers under this scheme pay tax at fixed rates and file fewer returns. But many taxpayers still ask: Which returns must a composition dealer file?
In this guide, we explain the GST Composition Scheme returns, their due dates, and compliance requirements.
✅ Types of Returns under GST Composition Scheme
A dealer registered under the composition scheme has to file three types of returns:
| Return Form | Purpose | Frequency | Due Date |
|---|---|---|---|
| CMP-08 | To declare self-assessed tax on turnover | Quarterly | 18th of the month following each quarter |
| GSTR-4 | Annual return with consolidated details of turnover and tax paid | Annually | 30th April following the financial year |
| GSTR-9A* | Annual return (now withdrawn after FY 2018-19) | Annually | No longer applicable |
👉 Note: GSTR-9A has been discontinued. Only CMP-08 and GSTR-4 remain mandatory.
🧾 CMP-08: Quarterly Statement
Every composition dealer must file Form CMP-08. It is a simple challan used to:
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Declare turnover for the quarter.
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Pay composition tax at the applicable rate.
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Avoid monthly filing burden faced by regular taxpayers.
For example, if a trader has turnover of ₹20 lakhs in a quarter, and the applicable GST Composition Scheme rate is 1%, he needs to pay ₹20,000 through CMP-08.
📌 GSTR-4: Annual Return
The second important return is Form GSTR-4. This annual return must include:
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Total turnover for the financial year.
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Details of tax already paid via CMP-08.
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Any additional liability if applicable.
The due date for filing GSTR-4 is 30th April of the next financial year. Filing this form ensures the compliance cycle closes smoothly.
⚠️ Penalty for Late Filing
Failure to file GST Composition Scheme returns on time attracts penalties.
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Late fee of ₹200 per day (₹100 CGST + ₹100 SGST), subject to a maximum of ₹5,000.
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Interest at 18% per annum on unpaid tax liability.
Hence, timely filing is critical to avoid unnecessary costs.
✅ Key Benefits of Simplified Returns
Composition dealers enjoy:
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Lesser compliance compared to regular taxpayers.
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Straightforward tax liability calculation.
These returns reduce stress for small traders, restaurants, and manufacturers who focus on business growth instead of paperwork.
Conclusion
The GST Composition Scheme returns include CMP-08 (quarterly) and GSTR-4 (annual). With reduced paperwork and fixed tax liability, this scheme is ideal for small taxpayers. However, businesses must remain punctual with filings to avoid. penalties.
getting clarity about about What are the Returns to be Filed by Composition Scheme in GST is very important and need to act accordingly.
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