172. Credit of eligible duties and taxes on inputs held in stock to be allowed to a taxable person switching over from composition scheme
(1) A registered taxable person, who was either paying tax at a fixed rate or paying a fixed amount in lieu of the tax payable under the earlier law (hereinafter referred to in this section as a “composition taxpayer”), shall be entitled to take, in his electronic credit ledger, credit of eligible duties in respect of inputs held in stock and inputs contained in semi-finished or finished goods held in stock on the appointed date subject to the following conditions:
(i) such inputs and / or goods are used or intended to be used for making taxable supplies under this Act;
(ii) the said person is not paying tax under section 9;
(iii) the said taxable person is eligible for input tax credit on such inputs under this Act;
(iv) the said taxable person is in possession of invoice and/or other prescribed documents evidencing payment of duty under the earlier law in respect of inputs; and
(v) such invoices and /or other prescribed documents were issued not earlier than twelve months immediately preceding the appointed day.
(2) The amount of credit under sub-section (1) shall be calculated in such manner as may be prescribed.
(CGST Law)
(1) A registered taxable person, who was either paying tax at a fixed rate or paying a fixed amount in lieu of the tax payable under the earlier law (hereinafter referred to in this section as a “composition taxpayer”), shall be entitled to take, in his electronic credit ledger, credit of Value Added Tax in respect of inputs held in stock and inputs contained in semi-finished or finished goods held in stock on the appointed date subject to the following conditions:
(i) such inputs and / or goods are used or intended to be used for making taxable supplies under this Act;
(ii) the said person is not paying tax under section 9;
(iii) the said taxable person is eligible for input tax credit on such inputs under this Act;
(iv) the said inputs were not [specified in Schedule--- of the earlier law or in the rules made thereunder or in any notification issued under the earlier law] as inputs on which credit was not admissible under the earlier law;
(v) the said taxable person is in possession of invoice and/or other prescribed documents evidencing payment of tax under the earlier law in respect of inputs held in stock and inputs contained in semi- finished or finished goods held in stock on the appointed day; and
(vi) such invoices and /or other prescribed documents were issued not earlier than twelve months immediately preceding the appointed day.
(2) The amount of credit under sub-section (1) shall be calculated in such manner as may be prescribed.
(SGST Law)
