Input tax credit on pre registration and transitional stocks allowed, with prescribed reductions and mandated reversals on status change. Availability of Input Tax Credit is provided for transitional situations: newly registered persons, late registrations, and persons moving from composition to normal taxation may claim credit for inputs and inputs contained in stock immediately before becoming liable, and for capital goods subject to prescribed percentage reductions. Credit claims are barred after the statutory invoice limitation period. On change of business constitution, unutilised credit may transfer to the successor as prescribed. Persons opting for composition or becoming wholly exempt must remit an amount equivalent to attributable credit (reduced as prescribed), and disposal of credited capital goods triggers repayment equal to reduced credit or tax on transaction value, whichever is higher.