Effective date for composition levy
Rule 4 of the CGST Rules
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The composition option takes effect from the start of the financial year for which CMP-02 was filed, or from the date of registration where it was chosen in the registration application itself.
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543 characters, uneditedReproduced from the CBIC text. We explain it above — but you should always be able to read it yourself.
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(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 .
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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 If you spot anything out of date, tell us and we’ll fix it — this hub is checked daily against CBIC.
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