CMP-05 Notice - What it Means

What does CMP-05 mean?

The department believes you've violated composition scheme conditions. If removed from the scheme, you'll have to pay tax at regular rates for the entire period - a huge financial hit for small businesses.

What happens if you ignore it

How to respond

The official response form is: CMP-06 on GST portal.

• Read the notice carefully and confirm the GSTIN, financial year, and amount match your records.
• Check the underlying mismatch or filing in the GST portal before drafting your reply.
• If the demand is correct, pay via DRC-03 and file the response acknowledging it.
• If the demand is wrong, file the response with supporting documents and reasoning.
• If you are unsure, get a CA to review the notice before the deadline.

Quickest way to handle this

Forward your notice photo to Fylo on WhatsApp. You'll get a personalised explanation referencing the specific amounts, dates, and GSTIN on your notice, plus a draft reply you can copy-paste or hand to your CA - in your preferred Indian language. Free.