Input tax credit adjustment required when a registered person opts into the composition notification; balance credits lapse after payment. A registered person who has availed input tax credit and opts to pay tax under this notification must debit 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 subject to the credit reversal mechanism; after such payment any remaining input tax credit in the electronic credit ledger shall lapse.
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 registered person opts into the composition notification; balance credits lapse after payment.
A registered person who has availed input tax credit and opts to pay tax under this notification must debit 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 subject to the credit reversal mechanism; after such payment any remaining input tax credit in the electronic credit ledger shall lapse.
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