TaxTMI 
TaxTMI 
Availability Input Tax Credit - in special circumstances [Section 18 (1) & (2) of CGST Act]
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....e date on which he becomes liable to registration and has been granted such registration. [section 18(1)(a)] Available Not available Day immediately preceding the date from which he becomes liable to pay tax. Voluntary Registration [section 25(3)]: A taxable person takes voluntary registration even if his turnover is below exemption limit. [section 18(1)(b)] Available Not available Day immediately preceding the date of grant of registration Registered person Switching from Composition Scheme: If a taxable person paying tax on compounding basis crosses the compounding threshold and becomes a regular taxable person. [section 18(1)(c)] Available Available, but reduce ITC 5% Day immediately preceding the date from which supplier is ....
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....rom the date of becoming eligible to avail the input tax credit under section 18(1), or within such further period as may be extended by the Commissioner by a notification in this behalf, shall make a declaration, electronically, on the common portal in FORM GST ITC-01 to the effect that he is eligible to avail the input tax credit as aforesaid: * Any extension of the time limit notified by the Commissioner of State tax or the Commissioner of Union territory tax shall be deemed to be notified by the Commissioner. * The registered person shall within a period of 30 days from the date of becoming eligible to avail the input tax credit of section 18(1), or within such further period as may be extended by the Commissioner by a notification ....
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....d goods held in stock as on 31 march 2022 4,00,000 24,000 24,000 - 3 All inputs contained in semi-finished goods were procured after 01 may 2021 - - - - 4 Value of inputs contained in finished goods held in stock as on 31 march 2022 50,000 3,000 3,000 - 5 Value of capital goods used exclusively in relation to exempted goods held on 31 march 2022 20,00,000 - - 3,60,000 Note :- 1) all inputs were procured after 01 July 2021 2) Only inputs worth 40,000 in finished goods were procured after 01 April 2021 3) Date of invoice of capital goods is 22 January 2022 4) CGST, SGST, & IGST rate 6%,6% & 18% respectively. Solution: - As per Rule 40 of CGST Act, The amount of input tax credit attributable as when goods exempt ea....
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....or voluntary registration on 17th August 2022 and obtained registration on 22 August 2022. Mr. Narender has stock on the following two dates Date Closing Stock (units) 16th August 2022 24,000 21 August 14,000 On 21 August Mr. Narender has also purchased plant & Machinery for 2,00,000 plus GST 28%. Mr. Narender purchased goods at uniform rate throughout the year 100 per unit GST paid 18%. Solution:- * As per Provision of section 18(1)(c) of CGST Act 2017, Stock of Input in stock as on the day immediately preceding the date of grant of registration shall be eligible for ITC to the person who is getting himself voluntarily registered, * In the given case such stock in 14,000 units (stock in hand on 21 October 2020. Thus, admi....