TMI BlogBlock credit - Goods or Services or both on which tax has been paid under Composition Scheme [section 17(5)(e)]X X X X Extracts X X X X X X X X Extracts X X X X ..... on levy tax payer cannot avail input tax credit on goods or services used as inputs, recipient cannot claim input tax credit on receipts of goods or services from the composition taxpayer. Examples Example 1:- M/s Gupta Stores is registered as composition taxpayer under GST . it purchase a capital goods for business. In this case, M/s Gupta store cannot availed ITC on tax pay on ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eld in stock and on capital goods (reduced by prescribed percentage points) on the day immediately preceding the date from which he ceases to be eligible for composition scheme. The manner of calculation of eligible credit is provided in CGST Rules. This is subject to further condition that the invoices pertaining to such inward supplies should not be more than a year old. [ Refer FAQ Qus. 27 ] ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g to such inward supplies should not be more than a year old. [ refer FAQ Qus. 28 ] Example 5:- What would happen to the input tax credit availed by a registered person who opts for composition scheme or where the goods or services or both supplied by him become wholly exempt? The registered person has to pay an amount equal to the input tax credit in respect of stocks held and inputs con ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e on capital goods. The ITC amount shall be determined separately for integrated tax, central tax and state tax. The payment can be made by debiting electronic credit ledger, if there is sufficient balance in the said ledger, or by debiting electronic cash ledger. If any balance remains in the electronic credit ledger, it would lapse. [ refer FAQ Qus. 30 ] - Manuals - Ready reckoner - Law ..... X X X X Extracts X X X X X X X X Extracts X X X X
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