TaxTMI 
TaxTMI 
WHETHER PROVISION OF SEC 18(4) APPLY TO NON COMPOSITION DEALER UNDER VAT I.E EARLIER LAW AND OPTING TO COMPOSITION U/SEC 10 UNDER GST OR REGISTERED UNDER GST AND LATER STAGE SHIFTS TO COMPOSITION SCHEME ?
PROVISION OF SEC 18(4) APPLY TO NON COMPOSITION DEALER
25 Jul 2017 
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Input tax credit reversal: composition taxpayers must repay credit when previously taxed supplies become exempt under GST law.
Section 18(4) requires repayment of input tax credit where a person who has availed credit subsequently opts for the composition levy and the goods or services previously supplied become exempt under GST; such person must pay an amount equal to the credit taken. The rule applies to earlier non-composition dealers who opt into composition and to registrants who later shift to composition when exempt supplies are involved. (AI Summary)
Section 18(4) requires repayment of input tax credit where a person who has availed credit subsequently opts for the composition levy and the goods or services previously supplied become exempt under GST; such person must pay an amount equal to the credit taken. The rule applies to earlier non-composition dealers who opt into composition and to registrants who later shift to composition when exempt supplies are involved. (AI Summary)