Treatment of Input tax credit when Input Tax payer opts for Composite Taxation in GST

Where any reg­is­tered per­son who has availed of input tax cred­it opts to pay tax under sec­tion 10, i.e, Com­po­si­tion Tax­a­tion or, where the goods or ser­vices or both sup­plied by him become whol­ly exempt, he shall pay an amount, by way of deb­it in the elec­tron­ic cred­it ledger or elec­tron­ic 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 exer­cis­ing of such option 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.

 

In case of sup­ply of cap­i­tal goods or plant and machin­ery, on which input tax cred­it has been tak­en, the reg­is­tered per­son shall pay an amount equal to the input tax cred­it tak­en on the said cap­i­tal goods or plant and machin­ery reduced by such per­cent­age points as may be pre­scribed or the tax on the trans­ac­tion val­ue of such cap­i­tal goods or plant and machin­ery deter­mined under sec­tion 15, whichev­er is high­er:

Pro­vid­ed 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 deter­mined under sec­tion 15.

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