Skip to content

CMA Intermediate · Direct and Indirect Taxation · Composition Levy

A registered person who is already registered under GST wishes to opt for the composition levy for the coming financial year by filing the intimation under sub-rule (3) of rule 3. From which date is the option effective under the provisions of the Central Goods and Services Tax Rules, 2017?

The option is effective from the beginning of the financial year. Where an existing registered person files the intimation under sub-rule (3) of rule 3, rule 4(1) makes the composition option operative from the start of that financial year, not from the filing date.

  1. AThe date on which the intimation is filed on the common portal
  2. BThe first day of the next month after filing the intimation
  3. CThe beginning of the financial year for which the intimation is filedCorrect
  4. DThe date on which the proper officer approves the intimation

Explanation

Rule 4(1) states that where the intimation is filed under sub-rule (3) of rule 3, the option under section 10 is effective from the beginning of the financial year. The date of filing is relevant only for deciding the timing of the intimation, not for the effective date. No officer approval date is prescribed as the effective date.

Did you get it right without looking?

One question tells you little. A timed set on Composition Levy shows your real accuracy, how long you take and where you lose marks.

Practise Composition LevyFree diagnostic mock

More Composition Levy questions