Question 17 - A person becomes liable to pay tax on 1st August, 2017and has obtained registration on 15th August, 2017. Such person is eligible for input tax credit on inputs held in stock as on:

Input tax credit eligibility limited to inputs held before the tax liability effective date; post-registration purchases excluded.

Where a person becomes liable to tax on 1 August 2017 but registers on 15 August 2017, entitlement to Input Tax Credit is confined to inputs held in stock as of 31 July 2017.