What we do
Our work in this practice group is structured around the records, deadlines, and decisions involved:
- Substantially reduced compliance burden with quarterly instead of monthly filings.
- Concessional flat turnover tax rates (1% for manufacturers/traders, 5% for restaurants, 6% for service providers).
- Accurate reporting of inward supplies attracting reverse charge (RCM).
- Seamless electronic filing of Form CMP-08 before the quarterly deadline (18th).
- Consolidated preparation of Form GSTR-4 annual return before 30th April.
- Guidance on turnover thresholds (up to ₹1.5 Crore for goods, ₹50 Lakh for services).
- Protection against unintended exit from the composition scheme due to non-compliance.
How the engagement works
Under Section 10 of the CGST Act, composition dealers cannot collect GST from customers nor claim input tax credit (ITC) on inward purchases. Under Rule 62 of the CGST Rules, composition taxpayers must submit quarterly statement CMP-08 by the 18th day of the month succeeding the quarter and annual return GSTR-4 by 30th April following the financial year. Failure to file attracts statutory late fees under Section 47 (₹50/day or ₹20/day for NIL returns) and interest on delayed tax under Section 50.
Scenario 1: A retail store, grocery outlet, or local manufacturer with annual turnover below ₹1.5 Crore operating under the 1% composition scheme.
Scenario 2: A restaurant, food outlet, or catering business paying 5% flat turnover tax under composition.
Scenario 3: A small service provider or repair enterprise with turnover up to ₹50 Lakh opting for the 6% mixed composition scheme under Section 10(2A).
Scenario 4: A business buying goods or services from unregistered vendors requiring calculation and deposit of reverse charge (RCM) tax on CMP-08.
Scenario 5: A business crossing the ₹1.5 Crore ceiling during the year and needing smooth transition from composition to the regular GST scheme via Form GST CMP-04.
Turnover & Concessional Rate Computation
We verify quarterly sales records, classify eligible supplies, and compute exact flat-rate tax liabilities across Central Tax (CGST) and State Tax (SGST).
Reverse Charge (RCM) Review
We identify inward supplies subject to reverse charge mechanism (such as GTA transport, legal fees, or unregistered purchases) and calculate applicable RCM tax.
Form CMP-08 Electronic Filing
We prepare the quarterly CMP-08 statement, generate the electronic payment challan, and file on the GST portal before the 18th of the due month.
Annual Return GSTR-4 Filing
We compile total annual purchases, sales, and tax deposits into the comprehensive annual GSTR-4 return and file before the statutory 30th April deadline.
Step-by-step process
Step 1: Quarterly Sales & Expense Summaries
You provide quarterly turnover records, bank statements, and details of any unregistered purchases or transporter payments.
Step 2: Tax Liability Computation
We compute flat-rate turnover tax plus any applicable RCM liability and share a summary challan for tax remittance.
Step 3: Portal Submission of CMP-08
Upon tax deposit, we authenticate and submit Form CMP-08 on the GST portal using OTP or DSC.
Step 4: Year-End GSTR-4 Reconciliation
At fiscal year end, we reconcile all four quarters and file the statutory GSTR-4 annual return, providing the official acknowledgment.
Key deliverables & outputs
General questions
01What is the eligibility turnover limit for the GST composition scheme?
For manufacturers and traders of goods, the annual aggregate turnover limit is ₹1.5 Crore (₹75 Lakh for special category northeastern states). For service providers, the turnover limit is ₹50 Lakh under Section 10(2A).
02Can a composition dealer issue a tax invoice and charge GST?
No. Composition dealers cannot issue a tax invoice or collect GST from their customers. They must issue a "Bill of Supply" mentioning "Composition taxable person, not eligible to collect tax on supplies".
03Can a composition dealer claim Input Tax Credit (ITC)?
No. A composition taxpayer is statutorily barred from claiming input tax credit on purchases and expenses.
04What are the return filing frequencies for composition taxpayers?
Composition taxpayers file Form CMP-08 quarterly (due 18th of July, October, January, and April) and Form GSTR-4 annually (due 30th April).