Input tax credit entitlement preserved for new registrants and transfers, subject to prescribed conditions and time limits.

Input tax credit is available for registrants in respect of inputs and inputs in stock immediately before registration or before becoming liable, and for those leaving the composition scheme or where exempt supplies become taxable; credit on capital goods is subject to prescribed percentage reductions. Claims must be made within one year of the invoice. Unutilised credit may be transferred on change in constitution; where a person opts into composition or becomes exempt, they must pay an amount equivalent to attributable credit (reduced as prescribed) and any remaining balance lapses. For supply of capital goods, the higher of adjusted credit or tax on transaction value is payable.

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