CGST Rules – Central Goods and Services Tax Rules, 2017
Rule 6 – Validity of composition levy
(1) The option exercised by a registered person to pay tax under section
10
shall remain valid so long as he satisfies all the conditions mentioned in
the said section and under these rules.
(2) The person referred to in sub-rule (1) shall be liable to pay tax under
sub-section (1) of section 9 from the day he ceases to satisfy any of the
conditions mentioned in section 10 or the provisions of this Chapter and
shall issue tax invoice for every taxable supply made thereafter and he
shall also file an intimation for withdrawal from the scheme in FORM GST
CMP-04 within seven days of the occurrence of such event.
(3) The registered person who intends to withdraw from the composition
scheme shall, before the date of such withdrawal, file an application in
FORM GST CMP-04, duly signed or verified through electronic verification
code, electronically on the common portal.
(4) Where the proper officer has reasons to believe that the registered
person was not eligible to pay tax under section 10 or has contravened the
provisions of the Act or provisions of this Chapter, he may issue a notice
to such person in FORM GST CMP-05 to show cause within fifteen days of the
receipt of such notice as to why the option to pay tax under section
10
shall not be denied.
(5) Upon receipt of the reply to the show cause notice issued under
sub-rule (4) from the registered person in FORM GST CMP-06, the proper
officer shall issue an order in FORM GST CMP-07 within a period of thirty
days of the receipt of such reply, either accepting the reply, or denying
the option to pay tax under section 10 from the date of the option or from
the date of the event concerning such contravention, as the case may be.
(6) Every person who has furnished an intimation under sub-rule (2) or
filed an application for withdrawal under sub-rule (3) or a person in
respect of whom an order of withdrawal of option has been passed in FORM
GST CMP-07 under sub-rule (5), may electronically furnish at the common
portal, either directly or through a Facilitation Centre notified by the
Commissioner, a statement in FORM GST ITC-01 containing details of the
stock of inputs and inputs contained in semi-finished or finished goods
held in stock by him on the date on which the option is withdrawn or
denied, within a period of thirty days from the date from which the option
is withdrawn or from the date of the order passed in FORM GST CMP-07, as
the case may be.
(7) Any intimation or application for withdrawal under sub-rule (2) or (3)
or denial of the option to pay tax under section 10 in accordance with
sub-rule (5) 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.