Chapter II of Central Goods & Services Tax
Rules, 2017 specify Composition Rules which lay down the conditions and
restrictions of composition levy. The person exercising the option to pay tax
under section 10 shall comply with the following conditions, namely:
1. he is
neither a casual taxable person nor a non-resident taxable person
2. 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
3. the
goods held in stock by him have not been purchased from an unregistered
supplier and where purchased, he pays the tax under section 9(4)
4. he shall
pay tax under section 9(3) or 9(4) on inward supply of goods or services or
both
5. 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
5. 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
6. 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
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.