CGST (Central Goods and Services Tax) RULES 19.6.2017 | Learn About GST : Updates and Rules PDF Download

 Page 1


[To be published in the Official Gazette of India, Extraordinary, Part II, Section 3, Sub-
section (i)] 
Government of India 
Ministry of Finance  
Department of Revenue 
Central Board of Excise and Customs 
 
Notification No. 3 /2017 - Central Tax 
New Delhi, 19
th
 June, 2017 
29 Jyaistha, 1939 Saka 
 
G.S.R. (   )E.:- In exercise of the powers conferred by section 164 of the Central Goods and 
Services Tax Act, 2017 (12 of 2017), the Central Government hereby makes the following 
rules, namely:-  
Chapter I 
PRELIMINARY 
1. Short title, Extent and Commencement.- (1) These rules may be called the Central 
Goods and Services Tax Rules, 2017. 
(2) They shall come into force with effect from 22
nd
 June, 2017. 
2. Definitions.- In these rules, unless the context otherwise requires,- 
(a) “Act” means the Central Goods and Services Tax Act, 2017 (12 of 2017); 
(b) “FORM” means a Form appended to these rules; 
(c)  “section” means a section of the Act; 
(d) “Special Economic Zone” shall have the same meaning as assigned to it in 
clause (za) of section 2 of the Special Economic Zones Act, 2005 (28 of 
2005); 
(e) words and expressions used herein but not defined and defined in the Act shall 
have the meanings respectively assigned to them in the Act. 
 
Chapter II 
COMPOSITION RULES 
 
3. Intimation for composition levy.- (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.  
Page 2


[To be published in the Official Gazette of India, Extraordinary, Part II, Section 3, Sub-
section (i)] 
Government of India 
Ministry of Finance  
Department of Revenue 
Central Board of Excise and Customs 
 
Notification No. 3 /2017 - Central Tax 
New Delhi, 19
th
 June, 2017 
29 Jyaistha, 1939 Saka 
 
G.S.R. (   )E.:- In exercise of the powers conferred by section 164 of the Central Goods and 
Services Tax Act, 2017 (12 of 2017), the Central Government hereby makes the following 
rules, namely:-  
Chapter I 
PRELIMINARY 
1. Short title, Extent and Commencement.- (1) These rules may be called the Central 
Goods and Services Tax Rules, 2017. 
(2) They shall come into force with effect from 22
nd
 June, 2017. 
2. Definitions.- In these rules, unless the context otherwise requires,- 
(a) “Act” means the Central Goods and Services Tax Act, 2017 (12 of 2017); 
(b) “FORM” means a Form appended to these rules; 
(c)  “section” means a section of the Act; 
(d) “Special Economic Zone” shall have the same meaning as assigned to it in 
clause (za) of section 2 of the Special Economic Zones Act, 2005 (28 of 
2005); 
(e) words and expressions used herein but not defined and defined in the Act shall 
have the meanings respectively assigned to them in the Act. 
 
Chapter II 
COMPOSITION RULES 
 
3. Intimation for composition levy.- (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. 
(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 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) 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.  
 
 4. Effective date for composition levy.- (1) The option to pay tax under section 10 shall be 
effective from the beginning of the financial year, where the intimation is filed under sub-
rule (3) of rule 3 and the appointed day where the intimation is filed under sub-rule (1) of 
the said rule. 
(2) The intimation under sub-rule (2) of rule 3, shall be considered only after the grant of 
registration to the applicant and his option to pay tax under section 10 shall be effective 
from the date fixed under sub-rule (2) or (3) of rule 10. 
 
5. Conditions and restrictions for composition levy.- (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 
Page 3


[To be published in the Official Gazette of India, Extraordinary, Part II, Section 3, Sub-
section (i)] 
Government of India 
Ministry of Finance  
Department of Revenue 
Central Board of Excise and Customs 
 
Notification No. 3 /2017 - Central Tax 
New Delhi, 19
th
 June, 2017 
29 Jyaistha, 1939 Saka 
 
G.S.R. (   )E.:- In exercise of the powers conferred by section 164 of the Central Goods and 
Services Tax Act, 2017 (12 of 2017), the Central Government hereby makes the following 
rules, namely:-  
Chapter I 
PRELIMINARY 
1. Short title, Extent and Commencement.- (1) These rules may be called the Central 
Goods and Services Tax Rules, 2017. 
(2) They shall come into force with effect from 22
nd
 June, 2017. 
2. Definitions.- In these rules, unless the context otherwise requires,- 
(a) “Act” means the Central Goods and Services Tax Act, 2017 (12 of 2017); 
(b) “FORM” means a Form appended to these rules; 
(c)  “section” means a section of the Act; 
(d) “Special Economic Zone” shall have the same meaning as assigned to it in 
clause (za) of section 2 of the Special Economic Zones Act, 2005 (28 of 
2005); 
(e) words and expressions used herein but not defined and defined in the Act shall 
have the meanings respectively assigned to them in the Act. 
 
Chapter II 
COMPOSITION RULES 
 
3. Intimation for composition levy.- (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. 
(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 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) 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.  
 
 4. Effective date for composition levy.- (1) The option to pay tax under section 10 shall be 
effective from the beginning of the financial year, where the intimation is filed under sub-
rule (3) of rule 3 and the appointed day where the intimation is filed under sub-rule (1) of 
the said rule. 
(2) The intimation under sub-rule (2) of rule 3, shall be considered only after the grant of 
registration to the applicant and his option to pay tax under section 10 shall be effective 
from the date fixed under sub-rule (2) or (3) of rule 10. 
 
5. Conditions and restrictions for composition levy.- (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.  
 
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.  
Page 4


[To be published in the Official Gazette of India, Extraordinary, Part II, Section 3, Sub-
section (i)] 
Government of India 
Ministry of Finance  
Department of Revenue 
Central Board of Excise and Customs 
 
Notification No. 3 /2017 - Central Tax 
New Delhi, 19
th
 June, 2017 
29 Jyaistha, 1939 Saka 
 
G.S.R. (   )E.:- In exercise of the powers conferred by section 164 of the Central Goods and 
Services Tax Act, 2017 (12 of 2017), the Central Government hereby makes the following 
rules, namely:-  
Chapter I 
PRELIMINARY 
1. Short title, Extent and Commencement.- (1) These rules may be called the Central 
Goods and Services Tax Rules, 2017. 
(2) They shall come into force with effect from 22
nd
 June, 2017. 
2. Definitions.- In these rules, unless the context otherwise requires,- 
(a) “Act” means the Central Goods and Services Tax Act, 2017 (12 of 2017); 
(b) “FORM” means a Form appended to these rules; 
(c)  “section” means a section of the Act; 
(d) “Special Economic Zone” shall have the same meaning as assigned to it in 
clause (za) of section 2 of the Special Economic Zones Act, 2005 (28 of 
2005); 
(e) words and expressions used herein but not defined and defined in the Act shall 
have the meanings respectively assigned to them in the Act. 
 
Chapter II 
COMPOSITION RULES 
 
3. Intimation for composition levy.- (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. 
(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 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) 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.  
 
 4. Effective date for composition levy.- (1) The option to pay tax under section 10 shall be 
effective from the beginning of the financial year, where the intimation is filed under sub-
rule (3) of rule 3 and the appointed day where the intimation is filed under sub-rule (1) of 
the said rule. 
(2) The intimation under sub-rule (2) of rule 3, shall be considered only after the grant of 
registration to the applicant and his option to pay tax under section 10 shall be effective 
from the date fixed under sub-rule (2) or (3) of rule 10. 
 
5. Conditions and restrictions for composition levy.- (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.  
 
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.  
 
7. Rate of tax of the composition levy.- The category of registered persons, eligible for 
composition levy under section 10 and the provisions of this Chapter, specified in column 
(2) of the Table below shall pay tax under section 10 at the rate specified in column (3) of 
the said Table:- 
 
Sl. 
No. 
Category of registered persons Rate of tax 
(1) (2) (3) 
1. Manufacturers, other than manufacturers of such 
goods as may be notified by the Government  
one per cent. 
2. Suppliers making supplies referred to in clause (b) of 
paragraph 6 of Schedule II 
two and a half per cent. 
3. Any other supplier eligible for composition levy 
under section 10 and the provisions of this Chapter 
half per cent. 
 
Chapter III 
REGISTRATION 
 
8. Application for registration.- (1) Every person, other than a non-resident taxable person, 
a person required to deduct tax at source under section 51, a person required to collect tax 
at source under section 52 and a person supplying online information and database access 
or retrieval services from a place outside India to a non-taxable online recipient referred to 
in section 14 of the Integrated Goods and Services Tax Act, 2017 (13 of 2017) who is 
liable to be registered under sub-section (1) of section 25 and every person seeking 
registration under sub-section (3) of section 25  (hereafter in this Chapter referred to as 
“the applicant”) shall, before applying for registration, declare his Permanent Account 
Number, mobile number, e-mail address, State or Union territory in Part A of FORM 
GST REG-01 on the common portal, either directly or through a Facilitation Centre 
notified by the Commissioner: 
 
Provided that a person having a unit(s) in a Special Economic Zone or being a 
Special Economic Zone developer shall make a separate application for registration as a 
business vertical distinct from his other units located outside the Special Economic Zone: 
 
Provided further that every person being an Input Service Distributor shall make a 
separate application for registration as such Input Service Distributor.  
 
(2) (a) The Permanent Account Number shall be validated online by the common   
portal from the database maintained by the Central Board of Direct Taxes.  
  (b) The mobile number declared under sub-rule (1) shall be verified through a 
one-time password sent to the said mobile number; and 
     (c) The e-mail address declared under sub-rule (1) shall be verified through a 
separate one-time password sent to the said e-mail address. 
(3) On successful verification of the Permanent Account Number, mobile number and e-
mail address, a temporary reference number shall be generated and communicated to the 
applicant on the said mobile number and e-mail address. 
Page 5


[To be published in the Official Gazette of India, Extraordinary, Part II, Section 3, Sub-
section (i)] 
Government of India 
Ministry of Finance  
Department of Revenue 
Central Board of Excise and Customs 
 
Notification No. 3 /2017 - Central Tax 
New Delhi, 19
th
 June, 2017 
29 Jyaistha, 1939 Saka 
 
G.S.R. (   )E.:- In exercise of the powers conferred by section 164 of the Central Goods and 
Services Tax Act, 2017 (12 of 2017), the Central Government hereby makes the following 
rules, namely:-  
Chapter I 
PRELIMINARY 
1. Short title, Extent and Commencement.- (1) These rules may be called the Central 
Goods and Services Tax Rules, 2017. 
(2) They shall come into force with effect from 22
nd
 June, 2017. 
2. Definitions.- In these rules, unless the context otherwise requires,- 
(a) “Act” means the Central Goods and Services Tax Act, 2017 (12 of 2017); 
(b) “FORM” means a Form appended to these rules; 
(c)  “section” means a section of the Act; 
(d) “Special Economic Zone” shall have the same meaning as assigned to it in 
clause (za) of section 2 of the Special Economic Zones Act, 2005 (28 of 
2005); 
(e) words and expressions used herein but not defined and defined in the Act shall 
have the meanings respectively assigned to them in the Act. 
 
Chapter II 
COMPOSITION RULES 
 
3. Intimation for composition levy.- (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. 
(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 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) 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.  
 
 4. Effective date for composition levy.- (1) The option to pay tax under section 10 shall be 
effective from the beginning of the financial year, where the intimation is filed under sub-
rule (3) of rule 3 and the appointed day where the intimation is filed under sub-rule (1) of 
the said rule. 
(2) The intimation under sub-rule (2) of rule 3, shall be considered only after the grant of 
registration to the applicant and his option to pay tax under section 10 shall be effective 
from the date fixed under sub-rule (2) or (3) of rule 10. 
 
5. Conditions and restrictions for composition levy.- (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.  
 
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.  
 
7. Rate of tax of the composition levy.- The category of registered persons, eligible for 
composition levy under section 10 and the provisions of this Chapter, specified in column 
(2) of the Table below shall pay tax under section 10 at the rate specified in column (3) of 
the said Table:- 
 
Sl. 
No. 
Category of registered persons Rate of tax 
(1) (2) (3) 
1. Manufacturers, other than manufacturers of such 
goods as may be notified by the Government  
one per cent. 
2. Suppliers making supplies referred to in clause (b) of 
paragraph 6 of Schedule II 
two and a half per cent. 
3. Any other supplier eligible for composition levy 
under section 10 and the provisions of this Chapter 
half per cent. 
 
Chapter III 
REGISTRATION 
 
8. Application for registration.- (1) Every person, other than a non-resident taxable person, 
a person required to deduct tax at source under section 51, a person required to collect tax 
at source under section 52 and a person supplying online information and database access 
or retrieval services from a place outside India to a non-taxable online recipient referred to 
in section 14 of the Integrated Goods and Services Tax Act, 2017 (13 of 2017) who is 
liable to be registered under sub-section (1) of section 25 and every person seeking 
registration under sub-section (3) of section 25  (hereafter in this Chapter referred to as 
“the applicant”) shall, before applying for registration, declare his Permanent Account 
Number, mobile number, e-mail address, State or Union territory in Part A of FORM 
GST REG-01 on the common portal, either directly or through a Facilitation Centre 
notified by the Commissioner: 
 
Provided that a person having a unit(s) in a Special Economic Zone or being a 
Special Economic Zone developer shall make a separate application for registration as a 
business vertical distinct from his other units located outside the Special Economic Zone: 
 
Provided further that every person being an Input Service Distributor shall make a 
separate application for registration as such Input Service Distributor.  
 
(2) (a) The Permanent Account Number shall be validated online by the common   
portal from the database maintained by the Central Board of Direct Taxes.  
  (b) The mobile number declared under sub-rule (1) shall be verified through a 
one-time password sent to the said mobile number; and 
     (c) The e-mail address declared under sub-rule (1) shall be verified through a 
separate one-time password sent to the said e-mail address. 
(3) On successful verification of the Permanent Account Number, mobile number and e-
mail address, a temporary reference number shall be generated and communicated to the 
applicant on the said mobile number and e-mail address. 
(4) Using the reference number generated under sub-rule (3), the applicant shall 
electronically submit an application in Part B of FORM GST REG-01, duly signed or 
verified through electronic verification code, along with the documents specified in the 
said Form at the common portal, either directly or through a Facilitation Centre notified by 
the Commissioner. 
(5) On receipt of an application under sub-rule (4), an acknowledgement shall be issued 
electronically to the applicant in FORM GST REG-02. 
(6) A person applying for registration as a casual taxable person shall be given a 
temporary reference number by the common portal for making advance deposit of tax in 
accordance with the provisions of section 27 and the acknowledgement under sub-rule (5) 
shall be issued electronically only after the said deposit.   
 
9. Verification of the application and approval.- (1) The application shall be forwarded to 
the proper officer who shall examine the application and the accompanying documents 
and if the same are found to be in order, approve the grant of registration to the applicant 
within a period of three working days from the date of submission of the application.  
(2) Where the application submitted under rule 8 is found to be deficient, either in terms 
of any information or any document required to be furnished under the said rule, or where 
the proper officer requires any clarification with regard to any information provided in the 
application or documents furnished therewith, he may issue a notice to the applicant 
electronically in FORM GST REG-03 within a period of three working days from the 
date of submission of the application and the applicant shall furnish such clarification, 
information or documents electronically, in FORM GST REG-04, within a period of 
seven working days from the date of the receipt of such notice.  
Explanation.- For the purposes of this sub-rule, the expression “clarification” includes 
modification or correction of particulars declared in the application for registration, other 
than Permanent Account Number, State, mobile number and e-mail address declared in 
Part A of FORM GST REG-01. 
(3) Where the proper officer is satisfied with the clarification, information or documents 
furnished by the applicant, he may approve the grant of registration to the applicant within 
a period of seven working days from the date of the receipt of such clarification or 
information or documents.  
(4) Where no reply is furnished by the applicant in response to the notice issued under 
sub-rule (2) or where the proper officer is not satisfied with the clarification, information 
or documents furnished, he shall, for reasons to be recorded in writing, reject such 
application and inform the applicant electronically in FORM GST REG-05.  
(5) If the proper officer fails to take any action, - 
(a) within a period of three working days from the date of submission of the 
application; or 
(b) within a period of seven working days from the date of the receipt of the 
clarification, information or documents furnished by the applicant under sub-rule (2), 
the application for grant of registration shall be deemed to have been approved.