Transition of input tax credit: last return showing required; central credits transfer to electronic ledger; state credits are time limited.
Transitional rules allow carry forward of unutilised Cenvat credit/ITC shown in the last return under the pre GST regime if allowable under both laws: excise/service tax credits convert to CGST (transferred to the electronic ledger without a specified utilisation limit) while VAT and entry tax credits convert to SGST and must be utilised within a limited period after GST commencement; unutilised capital goods credit is permitted even if not carried forward in the last return, computed as historical credit less amounts already availed. (AI Summary)