TaxTMI Login
AI OCR ✕Convert scanned orders, printed notices, PDFs and images into clean, searchable, editable text within seconds. Starting at 2 Credits/page
Try Now →Just a moment...
AI OCR ✕Convert scanned orders, printed notices, PDFs and images into clean, searchable, editable text within seconds. Starting at 2 Credits/page
Try Now →By creating an account you can:
Press 'Enter' to add multiple search terms. Rules for Better Search
of 
Press 'Enter' after typing page number.
of Press 'Enter' after typing page number.
No Folders have been created
Are you sure you want to delete "My most important" ?
NOTE:
of Press 'Enter' after typing page number.
of Press 'Enter' after typing page number.
All TMI Notes
of Press 'Enter' after typing page number.
of Press 'Enter' after typing page number.
All TMI Notes
Note
Bookmark
Share
Don't have an account? Register Here
Manual - Composition Scheme in GST
Section 10 - Composition levy.
Section 18 - Availability of credit in special circumstances.
THE CENTRAL GOODS AND SERVICES TAX ACT, 2017
Rule 40 - Manner of claiming credit in special circumstances
Central Goods and Services Tax Rules, 2017
As per section 18(1)(c), he shall be entitled to take credit of input tax in respect of inputs held in stock, inputs contained in semi-finished or finished goods held in stock and on capital goods on the day immediately preceding the date from which he becomes liable to pay tax u/s 9 ( Section 9 = under normal scheme of payment of tax)
Provided that the credit on capital goods shall be reduced by such percentage points as may be prescribed.
As per Rule 40(1)(a), ITC on capital goods shall be claimed after reducing the tax paid on such capital goods by five percentage (5%) points per quarter of a year or part thereof from the date of the invoice or such other documents on which the capital goods were received by the taxable person.
It is important to note that in respect of inputs and capital goods, as per section 18(2), a registered person shall not be entitled to take input tax credit under sub-section (1) in respect of any supply of goods or services or both to him after the expiry of one year from the date of issue of tax invoice relating to such supply.
Input tax credit eligibility on switching from composition to normal scheme - capital goods credit reduced over time, subject to time bar. A taxpayer switching from the composition scheme to the normal scheme may claim Input Tax Credit for inputs, inputs in goods held in stock, and capital goods held immediately before liability to pay tax, but credit for capital goods must be reduced by the prescribed periodic reduction measured from the invoice or receipt date, and no credit may be claimed for supplies after one year from the tax invoice date. of Press 'Enter' after typing page number.
TaxTMI 
TaxTMI 