Welcome to your Ch 21: Input Tax Credit (56 to 60)
56. In case of change of scheme from composition scheme to Regular scheme, whether input tax credit on capital goods is available?
57. Examine the following statements
(i) When an exempt supply becomes taxable supply then in such case credit on inputs held in stock on the date immediately preceding the day exemption is withdrawn credit is eligible.
(ii) When an exempt supply becomes taxable supply then in such case credit on capital goods exclusively used for such exempted supply is ineligible. The credit of capital goods shall, however, stand reduced by 1/60th of the month or part of the month thereof from the date of the issue of the invoice for such goods.
58. There is change in the constitution of registered taxable person (sale, merger, amalgamation of such business or death of a person), it is possible to transfer unutilized input tax credit if
(i) There is specific provision of transfer of liabilities
(ii) File FORM GST ITC 02 electronically
59. What is the effect in ITC in case of switch over from taxable to exempt transactions or from regular to composition?
60. Examine the following statements
(i) in case of supply of capital goods or plant and machinery on which input tax credit has been taken, the registered person will have to pay higher of following two amount:
• Input tax credit taken on the said capital goods/ plant and machinery reduced by the percentage points specified; or
• the tax on the transaction value of such goods.
(ii) in case of supply of goods (refractory bricks, moulds and dies, jigs and fixtures on which ITC has been taken) as scrap, the registered person is required to pay the tax on the transaction value of such goods.
