Availability of Input tax credit in special cases

Special Circumstance

Time to take registration (If any)

Availability/reversal of Credit

Relevant time

Registration by a person become liable for registration under the provisions of GST Act

Within 30 days of becoming so liable

ITC on inputs in

1)      Opening stock

2)      Semi- finished stock

3)      Finished stock

Stock on the day immediately preceding the date on which he become liable for registration

Voluntary registration u/s 23 (3)

No time restriction

ITC on inputs in

1)      Opening stock

2)      Semi- finished stock

3)      Finished stock

Stock on the day immediately preceding the date of grant of registration

Person ceases to be covered by composition levy. (Shift from section 9 to section 8)

Not Applicable

ITC on inputs in

1)      Opening stock

2)      Semi- finished stock

3)      Finished stock

4)      ITC on capital Goods

On inputs and capital goods on the day immediately preceding the date from which he becomes liable to pay tax u/s 8.(credit on capital goods shall be reduced by prescribed percentage points)

Exempt supply becomes a taxable supply

Not Applicable

ITC on inputs in

1)      Opening stock

2)      Semi- finished stock

3)      Finished stock

4)      ITC on capital Goods exclusively used for such exempt supply.

On inputs and capital goods on the day immediately preceding the date when such supply become taxable (credit on capital goods shall be reduced by prescribed percentage points)

Change in constitution of a registered person

To be Prescribed

All Input tax credit remain unutilized in books of accounts of the registered person shall be transferred.

To  be prescribed

Reversal: Switch from section 8 to section 9 and when the supply becomes exempt u/s 11.

Not Applicable

Pay all the input tax credit held in input, semi-finished and finished goods and on capital goods(reduced by specified percentage points)

Any credit in their ledger after this adjustment shall lapse.

Reversal: Supply of Capital Goods  or plant & machinery on which ITC has been taken

Not applicable

Pay the higher of

a)      ITC taken as reduced by the percentage points or

b)      Tax on transaction value

Not applicable

Reversal: Supply of Refractory, Bricks, Moulds and dies, jigs and fixtures are supplied as Scrap

Not applicable

Taxpayer can pay the tax on transaction value.

Not applicable