Rule 6 of CGST Rules – Validity of composition levy

(updated as on 15.11.2017)

(1) The option exercised by a registered person to pay taxunder section 10 shall remain valid so long as he satisfies all the conditions mentioned inthe said section and under these rules.
(2) The person referred to in sub-rule (1) shall be liable to pay tax under sub-section (1)of section 9 from the day he ceases to satisfy any of the conditions mentioned in section10 or the provisions of this Chapter and shall issue tax invoice for every taxable supplymade thereafter and he shall also file an intimation for withdrawal from the scheme inFORM GST CMP-04 within seven days of the occurrence of such event.
(3) The registered person who intends to withdraw from the composition scheme shall,before the date of such withdrawal, file an application in FORM GST CMP-04, dulysigned or verified through electronic verification code, electronically on the commonportal.
(4) Where the proper officer has reasons to believe that the registered person was noteligible to pay tax under section 10 or has contravened the provisions of the Act orprovisions of this Chapter, he may issue a notice to such person in FORM GST CMP-05to show cause within fifteen days of the receipt of such notice as to why the option to paytax under section 10 shall not be denied.
(5) Upon receipt of the reply to the show cause notice issued under sub-rule (4) from theregistered person in FORM GST CMP-06, the proper officer shall issue an order inFORM GST CMP-07 within a period of thirty days of the receipt of such reply, eitheraccepting the reply, or denying the option to pay tax under section 10 from the date of theoption or from the date of the event concerning such contravention, as the case may be.
(6) Every person who has furnished an intimation under sub-rule (2) or filed anapplication for withdrawal under sub-rule (3) or a person in respect of whom an order ofwithdrawal of option has been passed in FORM GST CMP-07 under sub-rule (5), mayelectronically furnish at the common portal, either directly or through a FacilitationCentre notified by the Commissioner, a statement in FORM GST ITC-01 containingdetails of the stock of inputs and inputs contained in semi-finished or finished goods heldin stock by him on the date on which the option is withdrawn or denied, within a period
of thirty days from the date from which the option is withdrawn or from the date of theorder passed in FORM GST CMP-07, as the case may be.
(7) Any intimation or application for withdrawal under sub-rule (2) or (3) or denial of theoption to pay tax under section 10 in accordance with sub-rule (5) in respect of any placeof business in any State or Union territory, shall be deemed to be an intimation in respectof all other places of business registered on the same Permanent Account Number.

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