Section 146 - Credit of eligible duties and taxes on inputs held in stock to be allowed to a taxable person switching over from composition scheme

Input tax credit entitlement for taxpayers switching from composition scheme permitted subject to prescribed eligibility, documentation and recovery conditions.

A transitional provision allows composition taxpayers to take electronic credit for eligible duties and taxes on inputs and inputs in semi finished or finished goods held on the appointed date if those inputs are for taxable supplies, the person is not paying tax under section 8, would have been eligible for credit under the earlier law but for composition status, is eligible under this Act, and possesses invoices or prescribed documents issued within the twelve months preceding the appointed day; credit is calculated per generally accepted accounting principles and is recoverable as an arrear if later found recoverable under earlier law proceedings.