Using the wrong rate
Applying 1% to a restaurant, or 6% to a trader, misstates the tax. Confirm your category before the first quarter.
CMP-08 · Composition tax challan
CMP-08 explained: paying composition tax, quarter by quarter.
CMP-08 is how composition taxpayers report and pay their GST each quarter. Because it is a payment statement, the decisions that matter are the turnover you report, the rate you apply and the cash you move before the 18th. This guide walks through the calculation, the payment route and the mistakes that cause problems later.
Last reviewed 17 October 2026 · Independent guidance, not a government service
01 / The basics
What CMP-08 is for
Under the composition scheme, a small business pays a fixed percentage of its turnover instead of charging GST on each sale. The trade-off is simplicity: you do not collect tax from customers or track input credit invoice by invoice. CMP-08 is where that fixed tax is worked out and paid, quarter by quarter.
Because the scheme is simpler, the risk is in the numbers you report. Turnover that is understated or split across quarters incorrectly creates a payment gap, and that gap grows with interest. A short monthly check of your sales against the quarter keeps CMP-08 straightforward.
The scheme is a choice, not a default.
Composition is optional and tied to eligibility rules, including turnover limits. Confirm you still qualify before you file each quarter.
02 / How the tax is worked out
Calculating the quarterly tax
| Business type | Typical composition rate | Notes |
|---|---|---|
| Manufacturers and traders of goods | 1% | Applied to taxable turnover in the quarter |
| Restaurants without alcohol | 5% | Serving food and drink, with no alcohol sales |
| Other eligible service providers | 6% | Services not covered by a specific rate |
| Specific categories | Varies | Some supplies carry their own rate under the scheme |
Work out taxable turnover for the quarter, apply the rate, then split the result into CGST and SGST for intra-state supplies. Keep the working with the quarter's sales register, because the figure on CMP-08 must match your books.
Example: a trader with ₹10 lakh of taxable turnover in a quarter at 1% owes ₹10,000. That is ₹5,000 CGST and ₹5,000 SGST, paid in cash through the challan by the 18th of the next month.
03 / Paying the challan
How to pay through the challan
- 01
Compute the quarter's turnover
Total the taxable turnover for the three months from your books, and confirm it agrees with your sales records.
- 02
Enter CMP-08 details
Log in to the portal, open the CMP-08 form for the period, and enter turnover and the tax computed at the composition rate.
- 03
Generate the challan
Save the statement to generate the challan with the amounts for CGST, SGST and any other head.
- 04
Pay from the cash ledger
Pay the challan online through net banking or by NEFT or RTGS, or at an authorised bank. Keep the payment reference.
- 05
Confirm the cash ledger credit
Check that the amount is reflected in your electronic cash ledger and that the CMP-08 status is updated.
04 / Due dates and late fees
Key dates and what happens if you are late
| Quarter | Months covered | Due by |
|---|---|---|
| Q1 | April to June | 18 July |
| Q2 | July to September | 18 October |
| Q3 | October to December | 18 January |
| Q4 | January to March | 18 April |
Interest is charged on tax paid after the due date, and a late statement can carry a fee and can affect your standing in the scheme. Pay the tax on time, even when the statement needs a correction, and then fix the details through the amendment process.
05 / Avoid these
Common CMP-08 mistakes
Including exempt or non-taxable supplies
Only taxable turnover goes into the composition calculation. Exempt sales and certain other amounts are excluded.
Trying to use input credit
Composition taxpayers cannot offset purchase tax, so the cash ledger must cover the full amount.
Missing the 18th
A late payment carries interest even if the amount is correct. Set a reminder a week before each due date.
Questions people ask
Frequently asked questions
What is CMP-08?
CMP-08 is the quarterly statement that composition taxpayers file on the GST portal to report the tax they owe for the quarter. It is generated from the turnover and tax you enter, and it is used to create the challan through which you pay. Since it is a payment statement rather than a sales return, it does not list individual invoices.
Who must file CMP-08?
Registered taxpayers who have opted for the composition scheme under section 10 of the CGST Act, and who pay tax at the fixed composition rate instead of the regular rates. Regular taxpayers do not file CMP-08.
What is the due date for CMP-08?
CMP-08 is due by the 18th of the month following the quarter. The quarters are April to June, July to September, October to December, and January to March. So the July to September statement is due by 18 October. Check the portal for any change to the calendar.
How is the composition tax calculated?
You apply the composition rate to your taxable turnover for the quarter. The rate depends on your business. Manufacturers and traders of goods commonly pay 1%, restaurants that do not serve alcohol pay 5%, and other service providers pay 6%, with the rates set in the scheme. Split the tax equally between CGST and SGST for intra-state supply, or record it as IGST where the rules apply.
Can I use input tax credit to pay CMP-08?
No. Composition taxpayers cannot use input tax credit, and the tax is paid in cash from the electronic cash ledger. This is one of the trade-offs of the scheme, and it is why the scheme is usually considered only where input tax is small.
What is a challan and how do I use it?
The challan is the payment slip generated from your CMP-08 details. You pay it through net banking, NEFT, RTGS or over the counter at an authorised bank, using the challan details. Your cash ledger is credited once the payment is confirmed, and the challan number helps you trace it.
Do I have to file a return as well as CMP-08?
Yes. CMP-08 covers the quarterly payment, and the annual GSTR-4 return is filed once a year to report the full year's details. Composition taxpayers do not file GSTR-1 or GSTR-3B.
What is the late fee for late CMP-08?
Late payment attracts interest on the tax that is outstanding, and the late filing of related returns can attract a fee. Check the current rule for your return type on the portal, and pay the tax on time even if you need more time to complete the filing.
Can I switch out of composition mid-year?
Switching is governed by the rules and is not something to do casually. You generally need to be eligible on the basis of your turnover, and changes are linked to the financial year. Speak to an adviser before moving between schemes, because the tax you owe can change.
Is this page an official service?
No. GSTVibe is an independent guide and is not affiliated with GSTN or the tax department. We do not file CMP-08 for you. Confirm the rates, due dates and thresholds on the GST portal and in the notifications.
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This guide is informational and is not legal or tax advice. GST rules, forms and portal steps change. Confirm the current position on the official GST portal (gst.gov.in) and CBIC sources, and speak to a qualified adviser about your own facts. GSTVibe is not affiliated with GSTN or the tax department.