Input tax credit in special circumstances covers registration changes, business transfers, exemption shifts, and prescribed reversal of credit.

Input tax credit is available in special circumstances such as prompt registration after liability, registration under composition-related provisions, cessation from the composition scheme, and conversion of exempt supplies into taxable supplies. Credit may relate to inputs in stock, semi-finished or finished goods, and, where applicable, capital goods, subject to prescribed conditions, reductions, and a one-year invoice limit. Unutilised credit may be transferred on business reorganisation, while opting for composition tax or becoming wholly exempt requires reversal of attributable credit, with any remaining balance in the electronic credit ledger lapsing.

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