Rajagopal K
Quick Summary
Section 18 provides for input tax credit (ITC) availability in specific situations where a person becomes eligible under special circumstances. The section outlines when ITC can be claimed and the conditions for doing so. Sub-section (1): Eligibility to Claim ITC in Special Cases A registered pe
Daily Limit Reached
You have reached your daily limit of 2 Free Articles
Subscribe to CCI PRO for unlimited access
Why Upgrade to CCI PRO?
- No Ads
- WhatsApp Broadcasts
- Daily E-Newsletter
- Unlimited Articles Access
BEST VALUE
2 YEAR PLAN
3,499
(Inclusive of GST)
1 YEAR PLAN
1,999
(Inclusive of GST)
View all CCI PRO benfits
Already a PRO member? Login here for an ad-free experience.
FAQ :
A person who becomes liable to register under GST and obtains registration can claim ITC on inputs held in stock, and inputs contained in semi-finished or finished goods, on the day immediately before their registration date.
Yes, a person who voluntarily takes GST registration can claim ITC on inputs held in stock, and inputs contained in semi-finished and finished goods, as of the day immediately before they register.
When a registered person stops making exempt supplies and starts making taxable supplies, they can claim ITC on inputs held in stock, inputs in semi-finished and finished goods, and capital goods (reduced by a prescribed percentage), as of the day before the change.
The input tax credit under Section 18 must be claimed within 30 days from the date of becoming eligible, or within a further period extended by the Commissioner. Missing this deadline means losing the entitlement to claim the ITC.
If capital goods on which ITC was claimed under Section 18 are subsequently supplied, the registered person must pay tax on that supply. This tax is calculated as the ITC taken on the asset, reduced by a prescribed percentage, or the tax on the transaction value, whichever is higher.
CAclubindia
