Input tax credit adjustment required when opting for composition; payment equivalent to credit must be made and balance lapses. A newly inserted provision requires a registered person who availed input tax credit and opts for the composition notification to debit the electronic credit or cash ledger an amount equal to input tax credit on inputs in stock, inputs in semi finished or finished goods in stock, and on capital goods as if Section 18(4) and related rules applied; after such payment any remaining electronic credit ledger balance shall lapse. The annexure makes the GST Rules applicable to section 10 composition taxpayers apply mutatis mutandis to persons under this notification.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Input tax credit adjustment required when opting for composition; payment equivalent to credit must be made and balance lapses.
A newly inserted provision requires a registered person who availed input tax credit and opts for the composition notification to debit the electronic credit or cash ledger an amount equal to input tax credit on inputs in stock, inputs in semi finished or finished goods in stock, and on capital goods as if Section 18(4) and related rules applied; after such payment any remaining electronic credit ledger balance shall lapse. The annexure makes the GST Rules applicable to section 10 composition taxpayers apply mutatis mutandis to persons under this notification.
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