Credit of input tax at the time of registration :
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 CGST Act – section 18(1)(a) of CGST Act.
This provision also applies if a taxable person takes voluntary registration under section 25(3) of CGST Act, even if his turnover is below exemption limit – section 18(1)(b) of CGST Act.
The amount of credit under section 18(1) of CGST Act shall be calculated in such manner as may be prescribed – section 18(5) CGST Act.
Claiming credit when person applies for registration within 30 days – Input tax credit claimed in accordance with the provisions of section 18(1) of CGST Act on the inputs lying in stock or inputs contained in semi-finished or finished goods lying in stock, or the credit claimed on capital goods in accordance with the provisions of clauses (c) and (d) of the said sub-section, shall be subject to the following conditions —
(a) The input tax credit on capital goods, in terms of clauses (c) and (d) of sub-section (1) of section 18, shall be claimed after reducing the tax paid on such capital goods by five percentage points per of a year or part thereof from the date of invoice or such other documents on which the capital goods were received by the taxable person.
(b) The registered person shall within thirty days from the date of his becoming eligible to avail of input tax credit under sub-section (1) of section 18 shall make a declaration, electronically, on the Common Portal in form GST ITC-01 to the effect that he is eligible to avail of input tax credit as
.
(c) The declaration under clause (b) shall clearly specify the details relating to the inputs lying in stock or inputs contained in semi-finished or finished goods lying in stock, or as the case may be, capital goods—
(i) on the day immediately preceding the date from which he becomes liable to pay tax under the provisions of this Act, in the case of a claim under clause (a) of sub-section (1) of Section 18,
(ii) on the day immediately preceding the date of grant of registration, in the case of a claim under clause (b) of sub-section (1) of Section 18,
(iii) on the day immediately preceding the date from which he becomes liable to pay tax under section 9, in the case of a claim under clause (c) of sub-section (1) of Section 18,
(iv) on the day immediately preceding the date from which supplies made by the registered person becomes taxable, in the case of a claim under clause (d) of sub-section (1) of Section 18.
(d) The details furnished in the declaration under clause (c) shall be duly certified by a practicing chartered accountant or cost accountant if the aggregate value of claim on account of central tax,State tax and integrated tax exceeds two lakh rupees.
(e) The input tax credit claimed in accordance with clauses (c) and (d) of sub-section (1) of section 18shall be verified with the corresponding details furnished by the corresponding supplier in form GSTR-1or as the case may be, in Form GSTR- 4, on the Common Portal.