What happens to accumulated ITC when switching from regular gst filing to composition scheme

Dear All 

             A registered Gst firm has been filing regular gst returns since 2017 ever since gst was implemented. Purchases were mostly with slab rates 18 percent and outward supplies too were were at slab rates 18 percent.

As of this fy 2022 -2023 the firm has accumulated ITC of about rs 10lacs.From next fy 2023-2024 the firm wishes to switch to composition filing scheme.

Queries

1) What happens to the accumulated ITC of rs 10lacs whennew fy year 2023 2024 starts. Will it lapse(wasted)? or the firm can get  refund of accumulated  ITC before the new fy 2023 2024 begins

2)will the credit be carried over in new fy 2023 2024 in cash ledger 

Replies (1)

Switching from normal scheme to composition scheme, taxpayer shall be liable to pay an amount equal to the credit of input tax in respect of inputs held in stock on the day immediately preceding the date of such switch over. The balance of input tax credit after payment of such amount, if any lying in the credit ledger shall lapse.

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