What does rule 3 regulate?

It regulates intimation for composition levy. Read the exact text, conditions, exceptions and transaction date together.

Which subordinate law should be checked?

No direct CGST Rule has been certified in this phase. Notifications, circulars, forms and the corresponding SGST/UTGST layer may also apply.

What evidence should be retained?

Preserve the contract or transaction record, invoice or form, portal acknowledgement, payment/ledger evidence, correspondence, legal working and the official source version used.

Can portal behaviour override the statute?

No. Portal functionality is operational evidence; legal entitlement and liability remain controlled by the Act, Rules, notifications and binding decisions.

Rule 3 - Intimation for composition levy

CGST Rules, 2017

ACTIVEDIRECT_OFFICIAL_RULE_PAGEindex,follow

Source control: The text/status on this page is tied to the official source gateway and the Phase 1 legal-review register. Open official source.

Finin2min Summary - Rule in 2 Minutes

Paragraph / test Plain-language meaning Sub-rule (1) Migration-only route tied to provisional registration and the appointed day. It is not a fresh 2026 opt-in route. Sub-rule (2) A new applicant may choose composition in Part B of FORM Finin2min | P0-R01 Finin2min.com | Finance & Law Explained in 2 Minutes | Educational and professional reference Paragraph / test Plain-language meaning GST REG-01. Sub-rule (3) An existing regular registered person must file FORM GST CMP-02 before the financial year begins and complete the linked ITC reversal statement in FORM GST ITC-03 within sixty days from the start of that financial year. 2020-21 proviso A spent, year-specific relaxation. Preserve historically, but do not apply to a current opt-in. Sub-rule (3A) A spent transition window ending 31 March 2018. Preserve as historical text only. Sub-rule (4) A migration stock statement linked to sub-rule (1). It is not the standard current opt-in route. Sub-rule (5) The option operates PAN-wide across registrations; every linked registration must be considered. Operational map Control Result Forms / documents GST CMP-01, GST CMP-02, GST CMP-03, GST REG-01, GST ITC-03, GST TRAN-1

Exact operative text

(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: 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 up to the 31st day of July, 2020. (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 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 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) 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.

Paragraph-wise decode

Finin2min | P0-R01 Finin2min.com | Finance & Law Explained in 2 Minutes | Educational and professional reference Paragraph / test Plain-language meaning GST REG-01. Sub-rule (3) An existing regular registered person must file FORM GST CMP-02 before the financial year begins and complete the linked ITC reversal statement in FORM GST ITC-03 within sixty days from the start of that financial year. 2020-21 proviso A spent, year-specific relaxation. Preserve historically, but do not apply to a current opt-in. Sub-rule (3A) A spent transition window ending 31 March 2018. Preserve as historical text only. Sub-rule (4) A migration stock statement linked to sub-rule (1). It is not the standard current opt-in route. Sub-rule (5) The option operates PAN-wide across registrations; every linked registration must be considered. Operational map Control Result Forms / documents GST CMP-01, GST CMP-02, GST CMP-03, GST REG-01, GST ITC-03, GST TRAN-1

Section-Rule-Form-Notification bridge

No direct Rule certified in Phase 1. Check notifications, circulars, forms and corresponding State law.

The mapping is a legal concordance, not a round-robin related-link list. It is limited to instruments certified in this phase.

Practical example

The option is PAN-wide. The registrations must be tested together; a standalone State-level option is not available where the other registration remains outside the scheme.

Professional alert

• The official active page still displays time-bound legacy clauses. A clean professional guide must label them as spent/historical rather than silently deleting them. • For a current existing taxpayer, the operative route is normally sub-rule (3), not the appointed-day routes. • Eligibility is controlled by section 10, the notified threshold, current exclusions and corresponding State/UT law. • Portal availability is implementation evidence, not an independent source of legal entitlement.

Implementation checklist

Fix the transaction, taxable period and jurisdiction.
Read every subsection, proviso, explanation and omission marker.
Open the mapped Rule, form, notification and circular.
Test State/UT variation and portal version.
Preserve evidence, approvals, working papers and acknowledgements.
Record the conclusion, assumptions, source date and reviewer.

Evidence and retention checklist

Contract, purchase order, invoice or underlying transaction document.
Registration, return, ledger, challan and portal acknowledgement.
Official Act/Rule/notification version used and effective date.
Internal tax position paper, computation and management approval.
Correspondence, notices, replies, orders and appeal papers where applicable.

Practical Q&A

What does rule 3 regulate?: It regulates intimation for composition levy. Read the exact text, conditions, exceptions and transaction date together.
Which subordinate law should be checked?: No direct CGST Rule has been certified in this phase. Notifications, circulars, forms and the corresponding SGST/UTGST layer may also apply.
What evidence should be retained?: Preserve the contract or transaction record, invoice or form, portal acknowledgement, payment/ledger evidence, correspondence, legal working and the official source version used.
Can portal behaviour override the statute?: No. Portal functionality is operational evidence; legal entitlement and liability remain controlled by the Act, Rules, notifications and binding decisions.

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