Rule 3 of CGST Rules 2017: Intimation for Composition Levy

Provisions under Rule 3 of the Central Goods and Services Tax (CGST) Rules, 2017 relating to “Intimation for Composition Levy”, are as under:

CGST Rule 3: Intimation for Composition Levy (Chapter-II: Composition Levy Rules) 

(1) Any person who has been granted registration on a provisional basis under clause (b) of sub-rule (1) of rule 24 and who opts to pay tax under section 10, shall electronically file an intimation in FORM GST CMP-01, duly signed or verified through electronic verification code, on the common portal, either directly or through a Facilitation Centre notified by the Commissioner, prior to the appointed day, but not later than thirty days after the said day, or such further period as may be extended by the Commissioner in this behalf:

Provided that where the intimation in FORM GST CMP-01 is filed after the appointed day, the registered person shall not collect any tax from the appointed day but shall issue bill of supply for supplies made after the said day.

(2) Any person who applies for registration under sub-rule (1) of rule 8 may give an option to pay tax under section 10 in Part B of FORM GST REG-01, which shall be considered as an intimation to pay tax under the said section.

(3) Any registered person who opts to pay tax under section 10 shall electronically file an intimation in FORM GST CMP-02, duly signed or verified through electronic verification code, on the common portal, either directly or through a Facilitation Centre notified by the Commissioner, prior to the commencement of the financial year for which the option to pay tax under the aforesaid section is exercised and shall furnish the statement in FORM GST ITC-03 in accordance with the provisions of sub-rule (4) of rule 44 within a period of sixty days from the commencement of the relevant financial year.

Provided that any registered person who opts to pay tax under section 10 for the financial year 2020-21 shall electronically file an intimation in FORM GST CMP-02, duly signed or verified through electronic verification code, on the common portal, either directly or through a Facilitation Centre notified by the Commissioner, on or before 30th day of June, 2020 and shall furnish the statement in FORM GST ITC-03 in accordance with the provisions of sub-rule (4) of rule 44 upto the 31st day of July, 2020. [proviso inserted from 31/03/2020: refer Note 6]

(3A) Notwithstanding anything contained in sub-rules (1), (2) and (3), a person who has been granted registration on a provisional basis under rule 24 or who has been granted certificate of registration under sub-rule (1) of rule 10 may opt to pay tax under section 10 with effect from the first day of the month immediately succeeding the month in which he files an intimation in FORM GST CMP-02, on the common portal either directly or through a Facilitation Centre notified by the Commissioner, on or before the 31st day of March, 2018, and shall furnish the statement in FORM GST ITC-03 in accordance with the provisions of sub-rule (4) of rule 44 within a period of ninety days one hundred and eighty days [text substituted from 23/01/2018: refer Note 5] from the day on which such person commences to pay tax under section 10:

Provided that the said persons shall not be allowed to furnish the declaration in FORM GST TRAN-1 after the statement in FORM GST ITC-03 has been furnished. [substituted sub-rule (3A) and proviso from 13/10/2017: refer Note 4]

(4) Any person who files an intimation under sub-rule (1) to pay tax under section 10 shall furnish the details of stock, including the inward supply of goods received from unregistered persons, held by him on the day preceding the date from which he opts to pay tax under the said section, electronically, in FORM GST CMP-03, on the common portal, either directly or through a Facilitation Centre notified by the Commissioner, within a period of sixty days ninety days [text substituted from 17/08/2017: refer Note 1] from the date on which the option for composition levy is exercised or within such further period as may be extended by the Commissioner in this behalf.

(5) Any intimation under sub-rule (1) or sub-rule (3) or sub-rule (3A) [text inserted from 15/09/2017: refer Note 3] in respect of any place of business in any State or Union territory shall be deemed to be an intimation in respect of all other places of business registered on the same Permanent Account Number.

Amendments History:

1. In sub-rule (4) the text ‘sixty days’ substituted with the text ‘ninety days’ vide Notification 22/2017 dated 17/08/2017.

2. Sub-rule (3A) inserted vide Notification 34/2017 dated 15/09/2017. Also refer Note 4.

3. In sub-rule (5), the text ‘or sub-rule (3A)’ inserted vide Notification 34/2017 dated 15/09/2017.

4. Sub-rule (3A) substituted vide Notification 45/2017 dated 13/10/2017. Sub-rule (3A) before substitution:

(3A) Notwithstanding anything contained in sub-rules (1), (2) and (3), a person who has been granted registration on a provisional basis under rule 24 or who has applied for registration under sub-rule (1) of rule 8 may opt to pay tax under section 10 with effect from the first day of October, 2017 by electronically filing an intimation in FORM GST CMP-02, on the common portal either directly or through a Facilitation Centre notified by the Commissioner, before the said date and shall furnish the statement in FORM GST ITC-03 in accordance with the provisions of sub – rule (4) of rule 44 within a period of ninety days from the said date:

Provided that the said persons shall not be allowed to furnish the declaration in FORM GST TRAN 1 after the statement in FORM GST ITC 03 has been furnished. [sub-rule (3A) and proviso inserted from 15/09/2017: refer Note 2/ sub-rule (3A) and proviso substituted from 13/10/2017: refer Note 4]

5. In sub-rule (3A), the text ‘one hundred and eighty days’ substituted for the text ‘ninety days’ vide Notification 3/2018 dated 23/01/2018.

6. Proviso to Sub-rule (3) inserted w.e.f. 31/03/2020, vide Notification 30/2020 dated 03/04/2020.

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