Input tax credit entitlement on registration, business change or exemption conversion with prescribed adjustments and transfer rules. Input tax credit is available for inputs, inputs in semi finished or finished goods and, subject to prescribed reductions, capital goods held immediately before registration, conversion from composition, or when an exempt supply becomes taxable. Claims are time limited by invoice date; unutilised electronic credit may transfer on change of business constitution as prescribed. On opting for composition or when supplies become exempt the person must debit an amount equal to attributable credit after prescribed reductions, causing any remaining credit to lapse. Disposal of capital goods requires payment equal to the higher of reduced credit or tax on transaction value, with a proviso for certain scrap.