# The Central Goods and Services Tax Rules, 2017, Rule 5: Conditions and restrictions for composition levy

- Act: The Central Goods and Services Tax Rules, 2017 (Act G.S.R. 610(E) of 2017)
- In force from: 2017-06-22
- Ministry: Ministry of Finance
- Source URL: https://indiacode.ecourtsindia.com/cgst-rules-2017/rule/5/

## Text

(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.

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