Input tax credit availability for stock and capital goods follows registration, liability change, or change in taxability.

Availability of input tax credit is allowed when registration is obtained or when liability or taxability changes, permitting credit for inputs, inputs in semi finished or finished goods and, subject to prescribed percentage reductions, capital goods held immediately prior to the relevant date. Transfers on change of business constitution permit transfer of unutilised electronic credit where liabilities transfer. Time limits, prescribed calculation methods and prescribed reductions govern the amount of credit claimable or payable on opting for composition, on exemption of supplies, and on disposal of capital goods, with limited exceptions for certain scrap items.

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