GSTR-4 and CMP-08: Returns for Composition Dealers

• Due by the 18th of the month after each quarter: 18 July, 18 October, 18 January and 18 April
• Declares turnover for the quarter and the tax on it, plus any tax due under reverse charge
• The tax is paid in cash at the same time
• A nil CMP-08 is filed for a quarter with no turnover
• Interest at 18% a year applies on tax paid late

• Due by 30 June after the financial year, for 2024-25 onwards (it was 30 April before)
• Summarises the year's outward supplies and the tax paid through the four CMP-08s
• Reports inward supplies, including purchases from registered and unregistered suppliers and reverse charge
• Late fee is ₹50 a day, capped at ₹2,000 (₹500 for a nil return)

A composition provision store in Hassan sells ₹3,00,000 a month: ₹1,80,000 of taxable goods and ₹1,20,000 of nil-rated goods. For April–June 2026 its taxable turnover is ₹5,40,000. At 1%, the tax is ₹5,400 (₹2,700 CGST + ₹2,700 SGST), paid with CMP-08 by 18 July 2026.

Over the year, taxable turnover is ₹21,60,000 and the four CMP-08s pay ₹21,600. Nil-rated sales of ₹14,40,000 take total turnover to ₹36,00,000, well inside the ₹1.5 crore limit. GSTR-4 for 2026-27 reports these figures and is due by 30 June 2027.

The store pays the ₹21,600 from its margin; its bills of supply never show GST. Compared with a regular dealer, it saves the monthly GSTR-1 and GSTR-3B work but gives up input credit and inter-state sales.

• Collecting GST from customers while under composition
• Missing a nil CMP-08 in a quiet quarter
• Selling goods to another state, which is not allowed under the scheme
• Forgetting reverse charge tax, which is paid at the normal rate in CMP-08
• Crossing the turnover limit and not opting out within the time allowed

To move to composition from the next financial year, file CMP-02 on the portal before that year starts. To leave the scheme, file CMP-04; once turnover crosses the limit you must leave within the time the rules allow and start charging GST. A chartered accountant can tell you whether composition is cheaper than regular registration for your mix of sales and purchases.

Composition suits a shop that sells mostly to consumers within its own state, buys mostly from unregistered or composition suppliers, and has thin input credit. It does not suit a shop selling to registered businesses, because they cannot claim credit on a bill of supply, or one that wants to sell online across states.

A quick test: in the example above the Hassan store pays ₹21,600 a year under composition. As a regular dealer it would collect GST on ₹21,60,000 of taxable sales and claim credit on purchases; if that net tax would be close to ₹21,600, regular registration gives its business customers credit at almost no extra cost. A chartered accountant can run the numbers for your actual mix.

Set the business as a composition taxpayer in TripleBill and bills print as bills of supply with the composition declaration; sales reports give the quarter's turnover for CMP-08. You pay and file on gst.gov.in.

This page is general information about GST in India, not tax advice. Rates, thresholds and rules change; confirm with the GST portal or a chartered accountant before acting.

Last reviewed: November 2026. Facts on this page were checked against:

• CGST Act, 2017, section 10
• CGST Rules, 2017, rules 3, 5, 6, 7 and 62
• Notification No. 14/2019-Central Tax (turnover limits)
• Notification No. 12/2024-Central Tax (GSTR-4 due by 30 June)
• Notification No. 21/2021-Central Tax (GSTR-4 late fee)