# Conditions & Restrictions [Rule 5]
A composition dealer must comply with all the following:
1. Pay RCM normally: Tax under Sec 9(3)/9(4) on inward supplies of goods/services must be paid at normal rates.
2. Not a CTP / NRTP.
3. Bill of supply marking: At top of every bill of supply, mention — “Composition taxable person, not eligible to collect tax on supplies.”
4. Signage: Mention — “Composition taxable person” — on every notice/signboard displayed prominently at the Principal Place of Business and every Additional Place of Business.
5. Pay tax on stock under RCM (Sec 9(4)) held at the time of opting in.
6. For 10(1) opt-ins: must not be a manufacturer of notified goods in the preceding FY:
- Ice cream and other edible ice (whether or not containing cocoa)
- Pan masala
- All tobacco and manufactured tobacco substitutes
- Aerated waters
- Fly ash bricks / fly ash aggregate / fly ash blocks
- Bricks of fossil meals or similar siliceous earths
- Building bricks
- Earthen or roofing tiles
## Why the signage and bill-of-supply markings
So that recipients are not misled into believing they can claim ITC — a composition dealer cannot pass on tax.