Section-18. Availability of credit in special circumstances
(1) A person who has applied for
registration under the Act within thirty days from
the date on which he becomes liable
to registration and has been granted such
registration shall, subject to such
conditions and restrictions as may be
prescribed, be entitled to take
credit of input tax in respect of inputs held in stock
and inputs contained in semi-finished
or finished goods held in stock on the day
immediately preceding the date from
which he becomes liable to pay tax under
the provisions of this Act.
(2) A person, who takes registration
under sub-section (3) of section 23 shall,
subject to such conditions and
restrictions as may be prescribed, be entitled to
take credit of input tax in respect
of inputs held in stock and inputs contained in
semi-finished or finished goods held
in stock on the day immediately preceding
the date of grant of registration.
(3) Where any registered taxable
person ceases to pay tax under section 9, he shall,
subject to such conditions and
restrictions as may be prescribed, 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 under
section 8:
PROVIDED that the credit on capital
goods shall be reduced by such percentage
points as may be prescribed in this
behalf
(4) Where an exempt supply of goods
or services by a registered taxable person
becomes a taxable supply, such person
shall, subject to such conditions and
restrictions as may be prescribed, be
entitled to take credit of input tax in respect
of inputs held in stock and inputs
contained in semi-finished or finished goods
held in stock relatable to such
exempt supply and on capital goods exclusively
used for such exempt supply on the
day immediately preceding the date from
which such supply becomes taxable:
PROVIDED that the credit on capital
goods shall be reduced by such percentage
points as may be prescribed in this
behalf.
(5) A taxable person shall not be
entitled to take input tax credit under sub-section
(1), (2), (3) or (4), as the case may
be, in respect of any supply of goods and /
or services to him after the expiry
of one year from the date of issue of tax
invoice relating to such supply.
(6) Where there is a change in the
constitution of a registered taxable person on
account of sale, merger, demerger,
amalgamation, lease or transfer of the
business with the specific provision
for transfer of liabilities, the said registered
taxable person shall be allowed to
transfer the input tax credit that remains
unutilized in its books of accounts
to such sold, merged, demerged,
amalgamated, leased or transferred
business in the manner prescribed.
(7) Where any registered taxable
person who has availed of input tax credit switches
over as a taxable person for paying
tax under section 9 or, where the goods and
/ or services supplied by him become
exempt absolutely under section 11, he
shall pay an amount, by way of debit
in the electronic credit or cash ledger,
equivalent to the credit of input tax
in respect of inputs held in stock and inputs
contained in semi-finished or
finished goods held in stock and on capital goods,
reduced by such percentage points as
may be prescribed, on the day immediately
preceding the date of such switch
over or, as the case may be, the date of such
exemption:
PROVIDED that after payment of such
amount, the balance of input tax credit, if
any, lying in his electronic credit
ledger shall lapse.
(8) The amount payable under
sub-section (7) shall be calculated in such manner as
may be prescribed.
(9) The amount of credit under
sub-section (1), (2), (3) and (4) shall be calculated in
such manner as may be prescribed.
(10) In case of supply of capital
goods or plant and machinery, on which input
tax credit has been taken, the
registered taxable person shall pay an amount
equal to the input tax credit taken
on the said capital goods or plant and
machinery reduced by the percentage
points as may be specified in this behalf or
the tax on the transaction value of
such capital goods or plant and machinery
under sub-section (1) of section 15,
whichever is higher:
PROVIDED FURTHER that where
refractory bricks, moulds and dies, jigs and
fixtures are supplied as scrap, the
taxable person may pay tax on the transaction
value of such goods under sub-section (1) of section
15.
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