Composition Scheme

Intimation for composition levy

Rule 3 of the CGST Rules

Chapter 2 – Composition Text as on 2026-09-05 Source CBIC

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How you opt into composition: an existing registrant files CMP-02 before the financial year begins, a new applicant opts in Part B of REG-01 at registration, and stock details go in ITC-03. One intimation covers every GSTIN on the same PAN.

How this provision is built

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(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…
(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 sect…
(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…
(4) of rule 44 within a period of sixty days from the commencement of the relevant financial year: 1 [ Provided that any registered person who opts to pay tax under section 10 for the financial year 2020-21 shall electronica…
(5) Any intimation under sub-rule (1) or sub-rule (3) 5 [or sub-rule (3A)] 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 re…

The exact words of the law

3,984 characters, unedited

Reproduced from the CBIC text. We explain it above — but you should always be able to read it yourself.

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Rule 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: 1 [ 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.] 2 [(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 3 [one hundred and eighty days] 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.]

(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 4 [ninety 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) 5 [or sub-rule (3A)] 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.

What changed, and when

The amendment trail, newest first — because the version that applies to your case depends on the period.

2020-03-31 · Inserted

30/2020-CTdated

Inserted (w.e.f. 31.03.2020) vide Notification No. 30/2020 – CT dated.03.04.2020.

date not stated · Substituted

45/2017-CTdated

Substituted vide Notification No.45/2017 -CT dated. 13.10.2017 for "(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 t

date not stated · Substituted

03/2018-CTdated

Substituted for the word "ninety days" vide Notification No. 03/2018 – CT dated. 23.01.2018.

date not stated · Substituted

22/2017-CTdated

Substituted for the word "sixty" with effect from 17.08.2017 vide Notification No. 22/2017 – CT dated. 17.08.2017.

date not stated · Inserted

34/2017-CTdated

Inserted vide Notification No.34/2017 – CT dated. 15.09.2017.

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Where this comes from

Text reproduced from the Central Board of Indirect Taxes and Customs, as available on 2026-09-05. The explanation and practice notes above are GSTZone’s own, written for this hub. If you spot anything out of date, tell us and we’ll fix it — this hub is checked daily against CBIC.

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