Rule 5 of the CGST Act – 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 anunregistered supplier andwherepurchased, hepaysthetax 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.
Go To Rule 6
Go To Rule 4
