Rule 5 of CGST Rules - Conditions and restrictions for composition levy

Rule 5 of CGST Rules - Conditions and restrictions for composition levy

(updated as on 15.11.2017)

(1) The person exercising the optionto pay tax under section 10 shall comply with the following conditions, namely:-

(a) he is neither a casual taxable person nor a non-resident taxable person;

(b) the goods held in stock by him on the appointed day have not been purchasedin the course of inter-State trade or commerce or imported from a place outside Indiaor received from his branch situated outside the State or from his agent or principaloutside the State, where the option is exercised under sub-rule (1) of rule 3;

(c) the goods held in stock by him have not been purchased from an unregisteredsupplier and where purchased, he pays the tax under sub-section (4) of section 9;

(d) he shall pay tax under sub-section (3) or sub-section (4) of section 9 oninward supply of goods or services or both;

(e) he was not engaged in the manufacture of goods as notified under clause (e)of sub-section (2) of section 10, during the preceding financial year;

(f) he shall mention the words composition taxable person, not eligible tocollect tax on supplies at the top of the bill of supply issued by him; and

(g) he shall mention the words composition taxable person on every notice orsignboard displayed at a prominent place at his principal place of business and atevery additional place or places of business.

(2) The registered person paying tax under section 10 may not file a fresh intimationevery year and he may continue to pay tax under the said section subject to the provisionsof the Act and these rules.

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CHAPTER II

COMPOSITION RULES

Chapter IIof CGST Rules, 2017 consists of five rules relating to COMPOSITION RULESunder the GST regime. All this rules are available for your ready reference. Rule 3 :Intimation for composition levy Rule 4 : Effective date for composition levy Rule 5 :Conditions and restrictions for composition levy Rule 6 :Validity of composition levy Rule 7 :Rate of tax of the composition levy

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