Input tax credit available on stock and capital goods in specified registration and conversion events, subject to prescribed reductions. Input tax credit is allowed for specified transitional events: registration (including under section 25(3)), conversion from composition to regular tax, and conversion of exempt supplies to taxable, permitting credit on inputs, stock and capital goods subject to prescribed percentage reductions. Credit claims are barred for supplies invoiced more than one year earlier. On change of business constitution, unutilised electronic credit may transfer to the successor in the prescribed manner. A taxpayer opting into composition or becoming exempt must pay by debit to electronic ledgers an amount equal to credit on stock and capital goods reduced by prescribed percentages, and credit balances may lapse. Disposal of capital goods requires payment equal to adjusted credit or tax on transaction value, whichever is higher.