Block 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

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... yer 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 capital goods, * GST port .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... 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] Example 4:- Mr. A, a registered person was pa .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... 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 contained in semi-finished or finished goods held in stock on th .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X