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New GST Return Format for Composition Taxpayers in India


New GST Return Format

The GST return format for composition taxpayers in India has undergone significant changes, aiming to simplify the filing process and enhance compliance. Earlier, taxpayers who opted for the composition scheme were required to file a quarterly Form GSTR – 4, which ran into around seven pages. Now giving relief to the new GST return format for composition taxpayers in India, the Ministry of Finance has allowed them to file a ‘simplified self–assessed ‘ quarterly GST Return in Form GST CMP – 08 from the Financial year (FY) 2023-24. The due date for Filing GST CMP–08 is the 18th of the month immediately following the quarter.

The due date for filing GST CMP – 08 for the quarter Apr to June 2023 is 18th July 2023. But the department made the form available only at the end of July 2023. So due date for filing this form is extended to 31st August 2023.

The Goods and Services Tax (GST) is a comprehensive indirect tax levied on India’s supply of goods and services. It has transformed the country’s taxation system by unifying various taxes under one umbrella. Under the GST regime, different categories of taxpayers have specific requirements and compliance procedures. One such category is composition taxpayers, small businesses with turnover limits opting for a simplified tax scheme. To enhance ease of doing business and promote compliance, the government has introduced a new GST return format for composition taxpayers. This article provides an in-depth analysis of the new format, its implications, and the filing process.

Key Takeaways

  1. The new GST return format simplifies filing for composition taxpayers, reducing the compliance burden.
  2. Composition taxpayers must meet eligibility criteria to avail of the benefits of the composition scheme.
  3. The new format replaces multiple returns with a single form (CMP-08) and requires simplified reporting.
  4. Timely compliance with filing deadlines is crucial to avoid penalties and maintain the benefits of the composition scheme.
  5. Non-compliance with GST return filing can lead to penalties, fines, and disqualification from the composition scheme.
  6. Transitioning to the new format requires understanding the process and ensuring accurate and timely filing.
  7. Seek professional assistance, stay updated with guidelines, and maintain accurate records for a smooth transition.
  8. The new format aims to enhance GST compliance, tax collection, and transparency in the long run.
  9. The composition scheme offers a simplified tax scheme for small businesses with turnover limits.
  10. It is important for composition taxpayers to adapt to the new format, stay informed, and comply with the latest regulations for a seamless GST journey.

What is GSTR-4?

GSTR-4 is a GST Return filed by a Composition Dealer. Now giving relief to new GST return format for composition taxpayers in India. A normal taxpayer must provide tri-monthly returns, and a trader choosing a composition scheme is required to fulfil a single income tax return filing which is GSTR-4.

Eligibility for Composition Scheme

Before delving into the new GST return format, let’s first understand the eligibility criteria for the composition scheme. Small businesses with an annual aggregate turnover of up to Rs. 1.5 crore in the preceding financial year can opt for the composition scheme. However, certain businesses are not eligible, including those engaged in inter-state supplies, e-commerce operators, manufacturers of certain goods, and service providers, except for restaurants.

The Need for a New GST Return Format

Previously, composition taxpayers were required to file quarterly returns using the GSTR-4 form. However, this approach posed challenges and complexities for small businesses, involving multiple return filings. Recognizing the need to simplify the process and reduce compliance burdens, the government introduced a new GST return format exclusively for composition taxpayers.

Overview of the New GST Return Format

The new return format replaces the GSTR-4 with the CMP-08 form, a summary return for composition taxpayers. It eliminates the need for multiple return filings and streamlines the reporting requirements. Under the new format, composition taxpayers must summarise their outward supplies, inward supplies, and payment details. This simplified reporting process aims to save time and effort, allowing small businesses to focus on their core operations.

Previous GST Return Format

In the earlier return format, composition taxpayers had to file quarterly returns, including a summarized GSTR-4 form. However, this approach often posed challenges and complexities, leading to the introduction of a new and simplified format.

Changes in the New GST Return Format

The new GST return format for composition taxpayers introduces significant changes to streamline the process. It replaces the GSTR-4 with the CMP-08 form and eliminates the need for filing multiple returns. This simplification aims to reduce compliance burdens for small businesses.

1) Simplified Reporting

Under the new format, composition taxpayers will enjoy simplified reporting requirements. They will only need to provide a summary of outward supplies, inward supplies, and payment details. This streamlined approach allows easier and quicker filing, saving time and effort.

2) Filing Procedure

Filing GST returns as a composition taxpayer involves specific steps. First, taxpayers must log in to the GST portal and navigate the ‘Services’ section. From there, they can access the ‘Returns Dashboard’ and select the CMP-08 form to accurately fill in the required details.

3) Important Deadlines

Adhering to deadlines is crucial for composition taxpayers. The new GST return format requires quarterly filing by the 18th of the month succeeding the quarter. Timely compliance helps avoid penalties and ensures a smooth GST journey.

4) Penalty and Consequences

Non-compliance with GST return filing can lead to penalties and consequences. Composition taxpayers must know the implications of late or incorrect filing, including monetary fines and potential loss of composition scheme benefits.

5) Transition and Migration

Migration to the new return format is important for existing composition taxpayers. They must be well-informed about the transition process and understand the steps required to seamlessly adapt to the new format.

6) Tips for Smooth Transition

Composition taxpayers can follow some practical tips to ease the transition to the new GST return format. These include staying updated with the latest guidelines, seeking professional assistance, and maintaining accurate records to ensure smooth compliance.

7) Future Implications

Introducing the new GST return format signifies a significant step towards simplifying compliance for composition taxpayers. These changes are anticipated to improve GST compliance, enhance tax collection, and promote transparency in the long run. As the system evolves, composition taxpayers must stay informed about future developments or modifications.

Filing Process for Composition Taxpayers

To file GST returns under the new format, composition taxpayers must follow a specific procedure. Here is a step-by-step guide:

  1. Log in to the GST portal: Composition taxpayers should log in to the official GST portal using their credentials.
  2. Navigate to the Returns Dashboard: Once logged in, navigate to the “Services” section and access the Returns Dashboard.
  3. Select the CMP-08 form: In the Returns Dashboard, select the CMP-08 form, which is specifically designed for composition taxpayers.
  4. Fill in the required details: In the CMP-08 form, composition taxpayers must provide accurate information regarding their outward supplies, inward supplies, and payment details. It is crucial to ensure the correctness and completeness of the data to maintain compliance.
  5. Verify the information: After filling in the necessary details, carefully review the information provided in the CMP-08 form to avoid errors or discrepancies. Cross-check the figures with supporting documents to ensure accuracy.
  6. Submit the return: Once all the information has been reviewed and verified, click on the submit button to file the return electronically. After submission, a unique acknowledgement number will be generated for future reference.
  7. Payment of taxes: Composition taxpayers are not required to pay monthly taxes. Instead, they must pay taxes quarterly using a separate challan, which will be generated after submitting the CMP-08 form. Paying the taxes within the specified due dates is essential to avoid penalties.

GST return filing

Important Deadlines

Composition taxpayers need to adhere to specific deadlines for filing their GST returns. Under the new format, the return needs to be filed quarterly. The due date for filing CMP-08 for a particular quarter is the 18th of the month following the end of the quarter. Timely compliance with the filing deadlines is crucial to avoid penalties and maintain the benefits of the composition scheme.

Benefits of the New GST Return Format

Introducing the new GST return format brings several benefits for composition taxpayers. Some of the key advantages include:

  1. Simplified filing process: The new format reduces the compliance burden for composition taxpayers by eliminating multiple return filings. It streamlines the reporting requirements, making the filing process simpler and more efficient.
  2. Time and cost savings: With the simplified filing process, composition taxpayers can save valuable time and effort that would otherwise be spent on complex return filings. This allows them to focus on their core business operations.
  3. Enhanced compliance: The new format promotes better compliance among composition taxpayers. The simplified reporting requirements make it easier for small businesses to meet their tax obligations and maintain accurate records.
  4. Reduced chances of errors: By simplifying the filing process and providing a summary format, the new GST return format reduces the chances of errors or discrepancies in the return filing. This helps in maintaining accurate and reliable tax records.
  5. Seamless transition: The transition to the new GST return format is seamless for composition taxpayers. They can easily adapt to the simplified reporting requirements and file their returns accordingly.


Introducing the new GST return format for composition taxpayers is a significant step towards simplifying tax compliance for small businesses in India. The streamlined reporting requirements and elimination of multiple return filings alleviate the burden on composition taxpayers, allowing them to focus on their business operations. By adhering to the filing deadlines and ensuring accurate reporting, composition taxpayers can enjoy the benefits of the composition scheme while fulfilling their tax obligations. Composition taxpayers must stay updated with the latest guidelines and seek professional assistance to ensure smooth and seamless GST return filing.

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Frequently Asked Questions (FAQs)

What is the composition scheme in GST registration?

The composition scheme in GST is a simplified tax scheme for small businesses with a turnover limit. It allows them to pay taxes at a fixed rate without detailed invoicing.

Will the new GST return format impact the tax liability of composition taxpayers?

The new format does not impact the tax liability of composition taxpayers. They will continue to pay taxes at the applicable fixed rate under the composition scheme.

Where can composition taxpayers find more information on the new GST return format?

Composition taxpayers can refer to the official GST portal, seek guidance from tax professionals, or access government publications for more information on the new GST return format.

What is the new GST return rule in India?

The new GST return rule simplifies the filing process for composition taxpayers, replacing multiple returns with a single form (CMP-08) and reducing reporting requirements. It aims to alleviate compliance burdens and promote ease of filing.

What are the formats of GST returns?

The formats of GST returns include GSTR-1 for outward supplies, GSTR-3B for monthly summary returns, GSTR-9 for annual returns, and CMP-08 for composition taxpayers. Each format serves different reporting and compliance purposes.

What are the new changes in Gstr-1?

The new changes in GSTR-1 include the introduction of quarterly filing for taxpayers with a turnover of up to Rs. 5 crores, enhanced invoice-wise details, and optional reporting of B2B and B2C small invoices.

How do I file a new Gstr-1 format?

To file the new GSTR-1 format, login to the GST portal, access the “Returns” section, select GSTR-1, and accurately provide the required invoice-wise details, a summary of supplies, and other relevant information before submitting the return.

Is it compulsory to file GSTR-3B returns?

Yes, filing GSTR-3B returns is mandatory for every tax period, regardless of whether you have any GST liability. It applies to all registered taxpayers.

What is a Gstr-5?

GSTR-5 is a GST return format that must be filed by non-resident taxpayers who conduct business transactions in India. It contains details of all supplies made and received during the tax period, taxes paid and input tax credit claimed.

Who is eligible for Gstr-9 and Gstr-9C?

All regular taxpayers registered under GST are eligible to file GSTR-9, an annual return that contains a summary of outward and inward supplies made during the financial year. Meanwhile, GSTR-9C applies to taxpayers with an annual turnover exceeding Rs. 2 crores, and it requires certified reconciliation and audited financial statements to be submitted along with the annual return.

What is Gstr-2B?

GSTR-2B is a GST return format that provides taxpayers with an auto-drafted summary of their inward supplies. It includes details such as the Input Tax Credit (ITC) available, which can be used to set off against the GST liability. GSTR-2B is generated on the 14th day of every month and can help simplify the process of filing GSTR-3B returns.


GSTN and GSTIN are related to India’s Goods and Services Tax (GST) system. GSTN stands for Goods and Services Tax Network, a non-profit organization that manages the IT infrastructure of GST in India. On the other hand, GSTIN refers to the unique identification number assigned to every registered taxpayer under the GST regime. It is a 15-digit alpha-numeric code that is used for all transactions related to GST.

What is the late fee for nil GST?

The late fee for not filing a nil GST return is Rs. 20 per day (Rs. 10 per day under CGST and Rs. 10 per day under SGST/UTGST), subject to a maximum of Rs. 5,000. It’s important to note that even if there is no activity during the tax period, taxpayers must still file a nil GST return to avoid any penalties or legal complications.

What are the guidelines for database access under the GST regime?

Under the GST regime, database access is subject to specific guidelines and regulations. Tax authorities, authorized officials, or designated personnel may have access to the database for purposes such as tax administration, compliance verification, and audit.

How can taxpayers claim refunds under the Goods and Services Tax system?

Taxpayers can claim refunds under the Goods and Services Tax system by filing the appropriate refund application on the GST portal. The application must include details of the tax period, the amount to be refunded, and supporting documents.

What is Input Service Distributor (ISD) role in the GST framework?

Input Service Distributors (ISD) play a significant role in the GST framework. They receive invoices for input services and distribute the input tax credit (ITC) to the respective branches or units within the organization. ISDs help efficiently allocate and utilise ITC, ensuring proper documentation and compliance.

How is the Harmonized System of Nomenclature (HSN) code used in the GST system?

The Harmonized System of Nomenclature (HSN) code is a globally accepted system for classifying goods based on their nature and characteristics. The HSN code determines the tax rate applicable to a particular product or service in the GST system.

What are the important updates and changes in GST for the month of December?

The important updates and changes in GST for the month of December can vary each year. These updates could include amendments to tax rates, changes in compliance requirements, the introduction of new forms or procedures, and updates in the GST law.

What is a debit note and its implications under the GST regulations?

A debit note is a document issued by a supplier to a recipient when there is an upward revision in the invoice value or tax liability for a previous transaction. Under the GST regulations, a debit note is evidence for increasing the tax liability and enables the recipient to claim input tax credit accordingly.

How are certain fields auto-populated in GST returns?

In the GST system, certain fields in the GST returns are auto-populated to simplify the filing process and reduce errors. These fields are populated based on the data submitted in previous returns, such as GSTR-1, GSTR-2A, and GSTR-3B. The auto-population of fields helps taxpayers by reducing manual data entry efforts and promoting consistency in reporting.

What are the filing requirements for taxpayers in the month of April under GST?

Taxpayers in the GST system have various filing requirements in the month of April. These include filing GSTR-1, GSTR-3B, and any other applicable returns for the previous financial year. Additionally, taxpayers may need to reconcile their annual returns, comply with audit requirements, and fulfil any specific obligations prescribed by the tax authorities.

What is the concept of the reverse charge mechanism in the GST framework?

The concept of reverse charge mechanism is an important provision in the GST framework. Under this mechanism, the liability to pay tax is shifted from the supplier to the recipient of goods or services. In such cases, the recipient is required to pay the tax directly to the government instead of the supplier.

What decisions have been made by the GST Council recently?

Decisions made by the GST Council can vary depending on the timeline and specific meetings. The council, comprising representatives from the central and state governments, discusses and decides on various GST-related matters. These decisions may include changes in tax rates, amendments to GST laws, the introduction of new compliance measures, and addressing industry-specific concerns.

What are the key provisions of the GST Act in India?

The GST Act in India contains several key provisions that govern the Goods and Services Tax regime. These provisions include registration requirements, determination of tax liability, input tax credit mechanism, invoicing rules, time and place of supply rules, tax rates and exemptions.

What is the difference between TDS and TCS?

TDS and TCS are two different provisions under the GST framework. TDS stands for Tax Deducted at Source, where the person making the payment is required to deduct tax at a certain percentage before making payment to the supplier. On the other hand, TCS stands for Tax Collected at Source, where an e-commerce operator must collect tax on behalf of the supplier from the consideration they received.


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