Summary of provisions of input tax credit in case of special circumstances :-
| Sr. No. |
Provision | Compliance |
| 1 | Application for registration within 30 days from the date of becoming liable for registration | Can take credit of Input Tax in respect of :
Inputs held in stock Inputs contained in Semi-Finished/Finished goods held in stock 85 Tax invoices issued within 1 year after becoming liable to pay tax. |
| 2 | Voluntary registration | Can take credit of Input Tax in respect of :
Inputs held in stock Inputs contained in Semi-Finished/Finished goods held in stock Tax invoices issued within 1 year from the date of Grant of registration subject to certain conditions. |
| 3 | A person who ceases to pay tax under Composition levy | Can take credit of Input Tax in respect of :
Inputs held in stock Inputs contained in Semi-Finished/Finished goods held in stock Capital goods(Credit can be reduced by prescribed percentage points) Within 1 year from the date of issue of tax invoices after becoming liable to pay tax |
| 4 | Where an exempt supply by a registered taxable person becomes a taxable supply | Can take credit of Input Tax in respect of :
Inputs held in stock Inputs contained in Semi-Finished/Finished goods held in stock Capital goods, which are Exclusively used for such supply From the date from which such supply become taxable.
|
| 5 | In case of sale/merger/ demerger/amalgamation/ lease or transfer of the business with the specific provision for transfer of liabilities | The input tax credit can be transferred to such sold/merged/demerged/amalgamated/leased or transferred business in the manner prescribed |
| 6 | Registered taxable person availing input tax credit switches over as a taxable person | 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 Inputs contained in Semi-Finished/Finished goods held in stock Capital goods(Credit can be reduced by prescribed percentage points) |
Check Points:
1. Eligibility of input tax credit on input, input services and capital goods.
2. Correctness of documents on the basis of which ITC is taken.
3. Payment to supplier of goods and services within 180 days.
4. Reversal of ITC in case of failure to make payment value and taxes within 180 days from date of invoice with appropriate interest.
5. Re-credit of input tax credit reversed earlier due to non-payment of value and taxes within 180 days from date of invoice.
6. Reversal of input, input services and capital goods used partly for effecting exempt supplies and partly for effecting taxable supplies including zero rated supplies.
7. Correctness of determination of value of exempt supply, taxable supply, zero rated supply and total turnover.
8. Applicability of GST on supply of capital goods
9. Reversal of input tax credit in case where inputs and capital goods sent on job work are not returned within prescribed time limit
10. Reconciliation of input tax credit taken in GSTR-3B and Input tax Credit appearing in GSTR-2A.
11. Payment of correct taxes on reverse charge basis and eligibility of input tax credit paid on taxes paid on reverse charge basis.
12. Eligibility of input tax credit carried forward through Tran-1 form.