TAX NOT SHOWN ERRORNEOUSLY ON CMP08 BUT IN CASH LEDGER

[AURA FERN]

I FILED THE CMP-08 OF JAN TO MARCH 2025 ON TIME. IN THE CMP-08 I FILLED THE OUTPUT BUT FORGOT TO FILL IN THE CGST AND SGST FIGURES AND FILED IT ERRORNEOUSLY.

BEFORE THAT I ALSO CREATED THE CHALLAN AND PAID THE AMOUNT WHICH IS STILL REFLECTED IN THE ELECTRONIC CASH LEDGER.

HOW DO I RECTIFY THIS ERROR. AS I CANNOT REVISE THE CMP08 HOW CAN I ADJUST THE CHALLAN PAID WITH THE OUTPUT SHOWN IN CMP-08.

NOW I WILL BE FILING THE ANNUAL RETURN. CAN ANY ADJUSTMENT BE DONE OR MENTIONED IN THE ANNUAL RETURN.

[YAGAY andSUN]

You've described a common issue under the GST Composition Scheme — filing CMP-08 with output tax liability shown but without mentioning the corresponding CGST/SGST amounts, even though you've already paid the correct amount via challan, and the amount reflects in your Electronic Cash Ledger.

Since CMP-08 cannot be revised, here’s how you can handle this and adjust it in your Annual Return (Form GSTR-4).

🔧 Issue Summary:

• ✅ CMP-08 for Q4 (Jan–Mar 2025) filed on time.
• ❌ CGST/SGST liability fields left blank.
• ✅ Challan created & payment made correctly (amount visible in cash ledger).
• ❓ Now you're filing Annual Return (GSTR-4) and want to adjust/declare the payment properly.

✅ Solution:

1. No Option to Revise CMP-08

You're correct — CMP-08 once filed cannot be revised. However, this does not result in loss, since your tax has already been paid and is available in the cash ledger.

2. Adjustment via GSTR-4 (Annual Return)

In GSTR-4, you're required to declare total turnover and tax liability for the year. Here’s how to manage your issue:

• In Table 6: Tax Rate-wise details, mention the correct taxable turnover and tax liability (CGST & SGST) for the full year, including Q4.
• Your previously paid challan amount (sitting in the electronic cash ledger) will automatically get adjusted when you offset the liability in GSTR-4.

3. Steps to Follow:

1. File GSTR-4 with correct figures – Include the correct CGST/SGST liability for the Jan–March quarter.
2. Offset the liability using the available balance in the cash ledger (from the earlier paid challan).
3. No penalty is applicable, as the payment was made on time and only a reporting mistake happened.

📌 Important Notes:

• Keep records of the paid challan and a copy of CMP-08 for your files.
• If any notice is received from the department (which is rare for such mistakes), you can provide proof of payment and explanation.
• Make sure future CMP-08 filings include both liability and payment to avoid mismatch.

✅ Conclusion:

You do not need to worry — just declare the correct tax liability in GSTR-4 and use the existing cash ledger balance to offset the tax. There’s no loss of money or legal issue here, since the tax was paid properly.

[Shilpi Jain]

See if you can pay it through DRC-03 and then make an intimation to the department in this regard.

Mention the comment in DRC-03 as error while filing CMP-08 now rectified by paying applicable taxes.

[KASTURI SETHI]

After in agreement with the replies of experts, also go through the following :-

Q. BEFORE THAT I ALSO CREATED THE CHALLAN AND PAID THE AMOUNT WHICH IS STILL REFLECTED IN THE ELECTRONIC CASH LEDGER.

Reply :  The due amount must be set off. Also go through proviso to Rule 88B which is extracted below :

"[Provided that where any amount has been credited in the Electronic Cash Ledger as per provisions of sub-section (1) of section 49 on or before the due date of filing the said return, but is debited from the said ledger for payment of tax while filing the said return after the due date, the said amount shall not be taken into consideration while calculating such interest if the said amount is lying in the said ledger from the due date till the date of its debit at the time of filing return.]"

AI Summary

GST Composition Taxpayer Can Rectify Incomplete Return by Properly Declaring Tax Liability in Annual Filing A taxpayer filed a GST composition scheme return (CMP-08) for January to March 2025 without specifying CGST and SGST figures, despite having paid the correct tax amount via challan. The electronic cash ledger reflects the payment. The recommended solution is to correctly declare the tax liability in the annual return (GSTR-4), using the existing cash ledger balance to offset the tax without incurring penalties. Alternative options include filing a DRC-03 form to rectify the reporting error.