GST in India provides a Composition Scheme as a relief mechanism for small taxpayers to ease compliance. Composition dealers are not required to file monthly returns like regular taxpayers; instead, they file simplified annual and quarterly returns. Two key GST returns applicable to composition taxpayers are CMP-08 and GSTR-4.

Who is a Composition Dealer?
A Composition Dealer is a taxpayer registered under Section 10 of the CGST Act who opts to pay GST at a fixed percentage of turnover instead of the regular GST rates. This scheme is available to small businesses with limited turnover.

Eligible Persons:
Manufacturers (excluding ice cream, pan masala, and tobacco)
Traders
Restaurants (not serving alcohol)
Service providers (limited to ₹50 lakhs turnover as per Notification No. 2/2019–Central Tax (Rate))

Tax Rates under Composition Scheme:
Category Rate (GST) Manufacturers 1% (0.5% CGST + 0.5% SGST) Traders 1% (0.5% CGST + 0.5% SGST) on taxable turnover Restaurants (not alcohol) 5% (2.5% CGST + 2.5% SGST) Service Providers (as per notification) 6% (3% CGST + 3% SGST)

What is GSTR-4?
GSTR-4 is an annual return to be filed by Composition Dealers from FY 2019-20 onwards.
Applicable for composition taxpayers under Section 10 and Notification 2/2019.
Filed annually (once a year).
Must be filed even if there are no transactions (NIL return).
Contains details of outward supplies, inward supplies, tax paid, and summary of self-assessed liability.

Due Date for GSTR-4:
30th June of the following financial year.

Penalty for Late Filing
Return Late Fee GSTR-4 ₹200/day (₹100 CGST + ₹100 SGST), capped at ₹5,000 CMP-08 ₹200/day (₹100 CGST + ₹100 SGST)