Rules Rule 5 of CGST Rules i.e Conditions and Restrictions for Composition Levy (Under Section 10 of CGST Act)

Financial Year: 2017

Rule 5 of CGST Rules

 

Conditions and restrictions for composition levy

 

 

(1)    The person exercising the option to 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 purchased in the course of inter-State trade or commerce

or imported from a place outside India

or received from his branch situated outside the State

or from his agent or principal outside 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 unregistered supplier

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 on inward 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 to collect 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 or signboard

displayed at a prominent place at his principal place of business

and at every additional place or places of business.

 

 

(2)        The registered person paying tax under section 10

may not file a fresh intimation every year and he may

continue to pay tax under the said section subject to the provisions of the Act and these rules.

 

Thanks

CA Rahul Gupta