Section 140 - Transitional arrangements for input tax credit.

Transitional input tax credit entitlement allows carried forward VAT and capital goods credits under prescribed conditions into GST electronic ledgers.

Transitional rules permit registered persons (excluding composition taxpayers) to claim carried forward VAT credit and unavailed capital goods credit into the electronic credit ledger, subject to admissibility under GST, filing of recent returns, exclusion for credits tied to incentives or unsubstantiated central sales tax claims, possession of invoices or prescribed documents (issued within twelve months), and prescribed calculation and procedural requirements; special provisions cover previously unregistered or exempt suppliers, post appointed day receipts where supplier paid tax, and taxpayers who had paid tax at fixed rates.