Input tax credit adjustment required when a registrant opts for composition scheme; equivalent credit debited and residual credit lapses. A registered person who availed input tax credit and opts for the composition notification must pay, via debit to the electronic credit or cash ledger, an amount equivalent to input tax credit on inputs in stock, inputs in semi finished or finished goods in stock, and on capital goods, treating the supply as attracting the input tax credit reversal mechanism; after payment any remaining electronic credit ledger balance shall lapse. The rules applicable to composition taxpayers shall apply mutatis mutandis to such persons.
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 a registrant opts for composition scheme; equivalent credit debited and residual credit lapses.
A registered person who availed input tax credit and opts for the composition notification must pay, via debit to the electronic credit or cash ledger, an amount equivalent to input tax credit on inputs in stock, inputs in semi finished or finished goods in stock, and on capital goods, treating the supply as attracting the input tax credit reversal mechanism; after payment any remaining electronic credit ledger balance shall lapse. The rules applicable to composition taxpayers shall apply mutatis mutandis to such persons.
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