Composition scheme switch requires payment equal to input tax credit on stock prior to switching under transitional GST rules. A taxable person switching to the composition scheme must pay, by debit to the electronic credit or cash ledger, an amount equal to the input tax credit for inputs in stock and inputs in semi finished or finished goods held on the day immediately preceding the switch; any remaining input tax credit balance in the electronic credit ledger lapses after payment.
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Provisions expressly mentioned in the judgment/order text.
Composition scheme switch requires payment equal to input tax credit on stock prior to switching under transitional GST rules.
A taxable person switching to the composition scheme must pay, by debit to the electronic credit or cash ledger, an amount equal to the input tax credit for inputs in stock and inputs in semi finished or finished goods held on the day immediately preceding the switch; any remaining input tax credit balance in the electronic credit ledger lapses after payment.
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