RULE 5
CONDITIONS AND RESTRICTIONS FOR COMPOSITION LEVY.-
(1) The person exercising the option to pay tax under section 10 shall comply with the following conditions, namely:-
a. he is neither a casual taxable person nor a non-resident taxable person;
b. the goods held in stock by him on the appointed day have not been purchased in the course of inter-State trade or commerce or imported from a place outside India or received from his branch situated outside the State or from his agent or principal outside the State, where the option is exercised under sub-rule(1) of rule 3;
c. the goods held in stock by him have not been purchased from an unregistered supplier and where purchased, he pays the tax under sub-section (4) of section 9;
f. he shall mention the words ―composition taxable person, not eligible to collect tax on supplies at the top of the bill of supply issued by him; and
g. he shall mention the words ―composition taxable person on every notice or signboard displayed at a prominent place at his principal place of business and at every additional place or places of business.
2. The registered person paying tax under section 10 may not file a fresh intimation every year and he may continue to pay tax under the said section subject to the provisions of the Act and these rules.