Accounts Officer
316 Points
Joined July 2012
3. Conditions and restrictions for composition levy
(1) The person exercising the option to pay tax under section 10 shall comply with the
following conditions:
(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 1;
(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 subsection
(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.
This is the part of GST act