{"id":7218,"date":"2025-08-27T10:26:09","date_gmt":"2025-08-27T10:26:09","guid":{"rendered":"https:\/\/margbooks.com\/blogs\/?p=7218"},"modified":"2025-08-27T10:29:11","modified_gmt":"2025-08-27T10:29:11","slug":"what-returns-need-to-be-filed-in-the-gst-composition-scheme","status":"publish","type":"post","link":"https:\/\/margbooks.com\/blogs\/what-returns-need-to-be-filed-in-the-gst-composition-scheme\/","title":{"rendered":"What Returns Need to Be Filed in the GST Composition Scheme?"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_69_1 ez-toc-wrap-left counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #1c6e70;color:#1c6e70\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #1c6e70;color:#1c6e70\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/margbooks.com\/blogs\/what-returns-need-to-be-filed-in-the-gst-composition-scheme\/#Understanding_the_GST_Composition_Scheme\" title=\"Understanding the GST Composition Scheme\">Understanding the GST Composition Scheme<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/margbooks.com\/blogs\/what-returns-need-to-be-filed-in-the-gst-composition-scheme\/#Returns_to_be_Filed_Under_the_GST_Composition_Scheme\" title=\"Returns to be Filed Under the GST Composition Scheme\">Returns to be Filed Under the GST Composition Scheme<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/margbooks.com\/blogs\/what-returns-need-to-be-filed-in-the-gst-composition-scheme\/#1_CMP-08_%E2%80%93_Quarterly_Return\" title=\"1. CMP-08 \u2013 Quarterly Return\">1. CMP-08 \u2013 Quarterly Return<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/margbooks.com\/blogs\/what-returns-need-to-be-filed-in-the-gst-composition-scheme\/#2_GSTR-4_%E2%80%93_Annual_Return\" title=\"2. GSTR-4 \u2013 Annual Return\">2. GSTR-4 \u2013 Annual Return<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/margbooks.com\/blogs\/what-returns-need-to-be-filed-in-the-gst-composition-scheme\/#Additional_Compliance_to_Remember\" title=\"Additional Compliance to Remember\">Additional Compliance to Remember<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/margbooks.com\/blogs\/what-returns-need-to-be-filed-in-the-gst-composition-scheme\/#Important_Points\" title=\"Important Points:\">Important Points:<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/margbooks.com\/blogs\/what-returns-need-to-be-filed-in-the-gst-composition-scheme\/#Why_Use_GST_Billing_Software_like_MargBooks\" title=\"Why Use GST Billing Software like MargBooks?\">Why Use GST Billing Software like MargBooks?<\/a><ul class='ez-toc-list-level-3' ><li class='ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/margbooks.com\/blogs\/what-returns-need-to-be-filed-in-the-gst-composition-scheme\/#Automation\" title=\"Automation\">Automation<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/margbooks.com\/blogs\/what-returns-need-to-be-filed-in-the-gst-composition-scheme\/#Accuracy\" title=\"Accuracy\">Accuracy<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-10\" href=\"https:\/\/margbooks.com\/blogs\/what-returns-need-to-be-filed-in-the-gst-composition-scheme\/#Time-Saving\" title=\"Time-Saving\">Time-Saving<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-3'><a class=\"ez-toc-link ez-toc-heading-11\" href=\"https:\/\/margbooks.com\/blogs\/what-returns-need-to-be-filed-in-the-gst-composition-scheme\/#Convenience\" title=\"Convenience\">Convenience<\/a><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-12\" href=\"https:\/\/margbooks.com\/blogs\/what-returns-need-to-be-filed-in-the-gst-composition-scheme\/#Conclusion\" title=\"Conclusion\">Conclusion<\/a><\/li><\/ul><\/nav><\/div>\n\n<p>The Goods and Services Tax (GST) system was introduced to simplify indirect taxation in India. However, for small businesses, complying with every detail of GST can still feel like a task. That\u2019s where the GST Composition Scheme comes in, a simplified tax scheme designed specifically for small taxpayers to reduce their compliance burden.<\/p>\n\n\n\n<p>But even under this easy-going scheme, there are certain returns and formalities that a business needs to comply with. In this blog, we\u2019ll walk you through what returns need to be filed under the GST Composition Scheme, and how tools such as GST Billing Software and Accounting Software (MargBooks) can make this process easier and error-free.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Understanding_the_GST_Composition_Scheme\"><\/span><strong>Understanding the GST Composition Scheme<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Before we jump into the returns, let\u2019s quickly recap what the GST Composition Scheme actually is.<\/p>\n\n\n\n<p>It\u2019s a simplified taxation method available to small businesses whose turnover is within a certain threshold, \u20b91.5 crore for most states (\u20b975 lakh for special category states). Instead of charging GST at the standard rates, composition dealers pay tax at a fixed rate on their turnover.<\/p>\n\n\n\n<p>Here\u2019s a quick look at the tax rates under the scheme:<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Manufacturers \u2013<\/strong> GST Composition Rate is 1% (0.5% CGST + 0.5% SGST)<\/li>\n\n\n\n<li><strong>Traders \u2013<\/strong> GST Composition Rate is 1% (0.5% CGST + 0.5% SGST)<\/li>\n\n\n\n<li><strong>Restaurants (not serving alcohol) \u2013<\/strong> GST Composition Rate is 5% (2.5% CGST + 2.5% SGST)<\/li>\n\n\n\n<li><strong>Service Providers (under special composition scheme) \u2013<\/strong> GST Composition Rate is 6% (3% CGST + 3% SGST)<\/li>\n<\/ul>\n\n\n\n<div class=\"btn-div\">\n\n    <a href=\"https:\/\/me9.in\/MBB\" class=\"marg-btn\" target=\"_blank\" rel=\"noopener\">Get GST Billing Software<\/a>\n<\/div>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Returns_to_be_Filed_Under_the_GST_Composition_Scheme\"><\/span><strong>Returns to be Filed Under the GST Composition Scheme<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Unlike regular GST taxpayers who have to file multiple returns each month, composition taxpayers have a much simpler compliance structure.&nbsp;<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"1_CMP-08_%E2%80%93_Quarterly_Return\"><\/span><strong>1. CMP-08 \u2013 Quarterly Return<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>This is a self-assessed statement of tax liability. It has to be filed quarterly, i.e., four times in a year.<\/p>\n\n\n\n<p><strong>Details Required in CMP-08:<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Turnover for the quarter<br><\/li>\n\n\n\n<li>Tax paid (based on the fixed rate)<br><\/li>\n\n\n\n<li>Tax payable and interest (if any)<\/li>\n<\/ul>\n\n\n\n<p><strong>Due Date<\/strong>: 18th of the month following the quarter<br>(Example: For the April-June quarter, CMP-08 is due by 18th July)<\/p>\n\n\n\n<p><strong>Pro Tip<\/strong>: Using a reliable <a href=\"https:\/\/margbooks.com\/gst-billing-software.html\">GST Billing Software<\/a>, MargBooks can auto-calculate this based on your invoices, saving you from last-minute panic.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"2_GSTR-4_%E2%80%93_Annual_Return\"><\/span><strong>2. GSTR-4 \u2013 Annual Return<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<p>This return needs to be filed once a year. It summarises all the quarterly statements submitted via CMP-08.<\/p>\n\n\n\n<p><strong>Key Details Included in GSTR-4:<\/strong><\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Consolidated turnover<br><\/li>\n\n\n\n<li>Inward and outward supplies<br><\/li>\n\n\n\n<li>Tax paid<br><\/li>\n\n\n\n<li>TDS\/TCS credits (if applicable)<\/li>\n<\/ul>\n\n\n\n<p><strong>Due Date<\/strong>: 30th April of the following financial year<\/p>\n\n\n\n<p><strong>Note<\/strong>: GSTR-4 is a comprehensive return and should be filed with caution. Any mismatch or delay may attract penalties or cancellation of the composition registration.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Additional_Compliance_to_Remember\"><\/span><strong>Additional Compliance to Remember<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Even though composition dealers don\u2019t have to generate tax invoices, they must issue a Bill of Supply. Also, they cannot collect GST from customers, and input tax credit (ITC) is not allowed.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Important_Points\"><\/span><strong>Important Points:<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Mention \u201cComposition taxable person, not eligible to collect tax on supplies\u201d on every bill.<br><\/li>\n\n\n\n<li>File returns on time to avoid penalties.<br><\/li>\n\n\n\n<li>Maintain clear records of sales and purchases.<\/li>\n<\/ul>\n\n\n\n<p>Using Accounting Software that\u2019s GST-compliant can ease the headache of maintaining ledgers and reconciliations. MargBooks, for instance, allows you to manage your books and generate the necessary documents for CMP-08 and GSTR-4, all in one place.<\/p>\n\n\n\n<div class=\"btn-div\">\n\n    <a href=\"https:\/\/me9.in\/MBB\" class=\"marg-btn\" target=\"_blank\" rel=\"noopener\">Get Accounting Software<\/a>\n<\/div>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Why_Use_GST_Billing_Software_like_MargBooks\"><\/span><strong>Why Use GST Billing Software like MargBooks?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Filing GST returns manually, especially under the composition scheme, might seem easy at first, but errors can cost you. And nobody wants a notice from the GST department!<\/p>\n\n\n\n<p>Here\u2019s how MargBooks and other good GST Billing Software make life easier:<\/p>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Automation\"><\/span><strong>Automation<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Auto-calculation of tax liability<br><\/li>\n\n\n\n<li>Auto-filling of return formats<br><\/li>\n\n\n\n<li>Real-time GST reports<br><\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Accuracy\"><\/span><strong>Accuracy<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Reduces the risk of human errors<br><\/li>\n\n\n\n<li>Ensures compliance with the latest GST laws<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Time-Saving\"><\/span><strong>Time-Saving<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li>No manual reconciliations or paperwork<br><\/li>\n\n\n\n<li>Easy export of return files<\/li>\n<\/ul>\n\n\n\n<h3 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Convenience\"><\/span><strong>Convenience<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Cloud-based access (manage your accounts from anywhere)<br><\/li>\n\n\n\n<li>Seamless integration with your business operations<\/li>\n<\/ul>\n\n\n\n<p>Whether you&#8217;re a shopkeeper or small-scale service provider, a smart <a href=\"https:\/\/margbooks.com\/online-accounting-software.html\">accounting software <\/a>solution using MargBooks keeps your business compliant, efficient, and stress-free.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Conclusion\"><\/span><strong>Conclusion<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>The GST Composition Scheme is a boon for small businesses that want to avoid the complexity of regular GST filing. But even in this simplified route, timely and accurate return filing is a must. The two main returns, CMP-08 (quarterly) and GSTR-4 (annually), form the backbone of your compliance journey.<\/p>\n\n\n\n<p>With our platform, <a href=\"https:\/\/margbooks.com\/\">MargBooks<\/a>, managing GST returns under the composition scheme becomes effortless. Whether it\u2019s generating bills of supply, calculating taxes, or filing returns, everything is streamlined, giving you more time to focus on growing your business.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The Goods and Services Tax (GST) system was introduced to simplify indirect taxation in India. However, for small businesses, complying with every detail of GST can still feel like a task. That\u2019s where the GST Composition Scheme comes in, a simplified tax scheme designed specifically for small taxpayers to reduce their compliance burden. But even [&hellip;]<\/p>\n","protected":false},"author":9,"featured_media":7219,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"rank_math_lock_modified_date":false,"footnotes":""},"categories":[38],"tags":[52,86,1583],"class_list":["post-7218","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-gst","tag-accounting-software","tag-gst-billing-software","tag-gst-composition-scheme"],"blocksy_meta":[],"blog_post_layout_featured_media_urls":{"thumbnail":["https:\/\/margbooks.com\/blogs\/wp-content\/uploads\/2025\/08\/GSt-150x150.jpg",150,150,true],"full":["https:\/\/margbooks.com\/blogs\/wp-content\/uploads\/2025\/08\/GSt.jpg",1200,576,false]},"categories_names":{"38":{"name":"GST","link":"https:\/\/margbooks.com\/blogs\/category\/gst\/"}},"tags_names":{"52":{"name":"accounting software","link":"https:\/\/margbooks.com\/blogs\/tag\/accounting-software\/"},"86":{"name":"gst billing software","link":"https:\/\/margbooks.com\/blogs\/tag\/gst-billing-software\/"},"1583":{"name":"GST Composition Scheme","link":"https:\/\/margbooks.com\/blogs\/tag\/gst-composition-scheme\/"}},"comments_number":"0","wpmagazine_modules_lite_featured_media_urls":{"thumbnail":["https:\/\/margbooks.com\/blogs\/wp-content\/uploads\/2025\/08\/GSt-150x150.jpg",150,150,true],"cvmm-medium":["https:\/\/margbooks.com\/blogs\/wp-content\/uploads\/2025\/08\/GSt.jpg",300,144,false],"cvmm-medium-plus":["https:\/\/margbooks.com\/blogs\/wp-content\/uploads\/2025\/08\/GSt.jpg",305,146,false],"cvmm-portrait":["https:\/\/margbooks.com\/blogs\/wp-content\/uploads\/2025\/08\/GSt.jpg",400,192,false],"cvmm-medium-square":["https:\/\/margbooks.com\/blogs\/wp-content\/uploads\/2025\/08\/GSt.jpg",600,288,false],"cvmm-large":["https:\/\/margbooks.com\/blogs\/wp-content\/uploads\/2025\/08\/GSt.jpg",1024,492,false],"cvmm-small":["https:\/\/margbooks.com\/blogs\/wp-content\/uploads\/2025\/08\/GSt.jpg",130,62,false],"full":["https:\/\/margbooks.com\/blogs\/wp-content\/uploads\/2025\/08\/GSt.jpg",1200,576,false]},"_links":{"self":[{"href":"https:\/\/margbooks.com\/blogs\/wp-json\/wp\/v2\/posts\/7218","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/margbooks.com\/blogs\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/margbooks.com\/blogs\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/margbooks.com\/blogs\/wp-json\/wp\/v2\/users\/9"}],"replies":[{"embeddable":true,"href":"https:\/\/margbooks.com\/blogs\/wp-json\/wp\/v2\/comments?post=7218"}],"version-history":[{"count":2,"href":"https:\/\/margbooks.com\/blogs\/wp-json\/wp\/v2\/posts\/7218\/revisions"}],"predecessor-version":[{"id":7221,"href":"https:\/\/margbooks.com\/blogs\/wp-json\/wp\/v2\/posts\/7218\/revisions\/7221"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/margbooks.com\/blogs\/wp-json\/wp\/v2\/media\/7219"}],"wp:attachment":[{"href":"https:\/\/margbooks.com\/blogs\/wp-json\/wp\/v2\/media?parent=7218"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/margbooks.com\/blogs\/wp-json\/wp\/v2\/categories?post=7218"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/margbooks.com\/blogs\/wp-json\/wp\/v2\/tags?post=7218"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}