Input tax credit availability permits credit on stock and capital goods when registration or tax status changes, subject to reductions.

Availability of input tax credit is allowed in defined special circumstances-new registration within the prescribed period, grant of special registration, change from composition to regular taxation, or where an exempt supply becomes taxable-entitling claimants to credit for inputs in stock and related capital goods subject to prescribed percentage reductions. A one year limitation from invoice issuance applies. Unutilised credit may be transferred on specified changes in business constitution. Opting for composition or becoming wholly exempt triggers payment of attributable credit amounts to the electronic ledger and lapse of any remaining balance. Supplies of capital goods require repayment equal to the adjusted credit or tax on transaction value, whichever is higher.

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