Skip to content
GST Law Hub
CGST Rule 4: Effective date for composition levy | Finin2min

Rule 4 - Effective date 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) - current limb CMP-02 filed under Rule 3(3) becomes effective from the beginning of the relevant financial year. Sub-rule (1) - legacy limb The appointed-day reference belongs to migration under Rule 3(1). Sub-rule (2) For a new applicant choosing composition in REG-01, effectiveness follows the registration effective date under Rule 10. Operational map Control Result Forms / documents GST CMP-02, GST REG-01

Exact operative text

(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.

Paragraph-wise decode

Paragraph / test Plain-language meaning Sub-rule (1) - current limb CMP-02 filed under Rule 3(3) becomes effective from the beginning of the relevant financial year. Sub-rule (1) - legacy limb The appointed-day reference belongs to migration under Rule 3(1). Sub-rule (2) For a new applicant choosing composition in REG-01, effectiveness follows the registration effective date under Rule 10. Operational map Control Result Forms / documents GST CMP-02, GST REG-01

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 follows Rule 3(3) and is effective from the beginning of that financial year under Rule 4(1). The linked ITC-03 statement must be completed within sixty days from the start of the year.

Professional alert

• A late or post-year-start CMP-02 cannot automatically be treated as a valid current-year opt-in merely because the portal accepts a filing. • Determine the correct effective date before changing invoice type, ITC treatment and return profile.

Implementation checklist

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

Evidence and retention checklist

Practical Q&A

What does rule 4 regulate?
It regulates effective date 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.
← PreviousNext →