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 listed in this repository. 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.

CGST Rule 3 — Intimation for composition levy

Reviewed by CA Nikhil Gupta and Kajri Singh · Last reviewed 30 August 2026

CGST Rules, 2017

CURRENT CONTROLLEDRepository module RULE CONTROL

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

Official sources

Use the official source for the controlling wording, footnotes, effective date and amendment history.

Source review date: 2026-07-28. Historical-period questions require the version applicable to the transaction date.

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

official statutory reference

(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 Repository module. 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 listed in this repository.

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 listed in this repository. 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.

Repository module professional rule control

Legal state: Current controlled · Checked: 27 July 2026. Current legal/release state is controlled by the Repository module master; read the official statutory reference and amendment history together.

Why Rule 3 matters

Intimation for composition levy should be read with its enabling CGST Act provision, prescribed forms, amendment notification, transaction date and the live portal workflow. The operative-text block already released on this page remains the legal core; Repository module adds application controls without altering that block.

Rule → Form → evidence bridge

FORM GST CMP-02BFORM GST ITC-03WFORM GST CMP-01FORM GST CMP-01IFORM GST REG-01 FORM GST CMP-02FORM GST ITC-03IFORM GST TRAN-1AFORM GST ITC-03HFORM GST CMP-03

Confirm the Rule version that was operative on the relevant date.
Check every proviso, explanation, inserted/omitted sub-rule and commencement notification.
Use the current prescribed form/portal utility rather than a saved legacy template.
Preserve the Rule source, filing/approval evidence, computation and decision-maker trail.

Finin2min decision path

Trigger: What transaction, registration event, return, credit, valuation, refund, appeal or enforcement event activates this Rule?
Date: Which Rule version and amendment notification applied on that date?
Conditions: Have every mandatory condition and exception been tested?
Form/portal: Is the prescribed form or electronic workflow the correct current version?
Evidence: Can the conclusion be reconstructed from books, invoices, portal records and official sources?

Practical cases

Non-cash consideration

Identify open-market value or the specific valuation method before using residual methods.

Related/distinct persons

Test the special valuation rule, recipient ITC eligibility and documentation.

Rate/valuation change

Freeze transaction date, classification and tax rate separately from taxable value.

Accounting, ERP and portal controls

Do not let an ERP default or portal auto-population override the legal Rule.
Map the Rule trigger to the correct tax period and retain before/after reconciliation where values change.
Archive ARN, acknowledgements, generated PDFs, payment/ledger records, notices and orders where applicable.

Notice and litigation risk

Separate a portal mismatch from a statutory breach; they are not automatically the same issue.
Identify whether a circular/instruction is clarificatory or whether an amendment changed the Rule itself.
Apply judicial hierarchy: Supreme Court → jurisdictional High Court → other High Courts → GSTAT; AAR/AAAR is not universal precedent.

Common mistakes

Using today's Rule for an older transaction without an effective-date test.
Reading a form instruction as if it overrides the Act or Rule.
Ignoring State/UT procedural overlays where the Rule requires a local notification or officer action.
Treating a source-gated local reproduction as cleared statutory text.

Finin2min Q&A

What does CGST Rule 3 deal with?: Intimation for composition levy. Start with the operative Rule version and then test the connected Act provision, forms and amendments.
Which GST form is connected to Rule 3?: CMP-02B, ITC-03W, CMP-01, CMP-01I, REG-01, CMP-02, ITC-03I, TRAN-1A, ITC-03H, CMP-03 The Rule and live portal workflow control.
Can I rely only on the GST portal?: No. Portal functionality is execution infrastructure; legal eligibility and consequences come from the Act, Rules and valid instruments.
What should I keep on file?: The official Rule version used, amendment/effective-date evidence, underlying transaction records, computation, portal submission and resulting acknowledgement/order.

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