Page 109 - GSTL_23rd July 2020_Vol 38_Part 4

2020 ] IN RE : NAVBHARAT LPG BOTTLING COMPANY 475
Section 18. (1) Subject to such conditions and restrictions as may be pre-
scribed -
(a) a person who has applied for registration under this Act with-
in thirty days from the date on which he becomes liable to reg-
istration and has been granted such registration shall be enti-
tled to take credit of input tax in respect of inputs held in stock
and inputs contained in semi-finished or finished goods held
in stock on the day immediately preceding the date from
which he becomes liable to pay tax under the provisions of
this Act;
(b) a person who takes registration under sub-section (3) of sec-
tion 25 shall be entitled to take credit of input tax in respect of
inputs held in stock and inputs contained in semi-finished or
finished goods held in stock on the day immediately preced-
ing the date of grant of registration;
(c) where any registered person ceases to pay tax under section
10, he shall be entitled to take credit of input tax in respect of
inputs held in stock, inputs contained in semi-finished or fin-
ished goods held in stock and on capital goods on the day
immediately preceding the date from which he becomes liable
to pay tax under section 9 :
Provided that the credit on capital goods shall be reduced by
such percentage points as may be prescribed;
(d) where an exempt supply of goods or services or both by a reg-
istered person becomes a taxable supply, such person shall be
entitled to take credit of input tax in respect of inputs held in
stock and inputs contained in semi-finished or finished goods
held in stock relatable to such exempt supply and on capital
goods exclusively used for such exempt supply on the day
immediately preceding the date from which such supply be-
comes taxable :
Provided that the credit on capital goods shall be reduced by
such percentage points as may be prescribed.
(2) A registered person shall not be entitled to take input tax credit under
sub-section (1) in respect of any supply of goods or services or both to him
after the expiry of one year from the date of issue of tax invoice relating to
such supply.
(3) Where there is a change in the constitution of a registered person on
account of sale, merger, demerger, amalgamation, lease or transfer of the
business with the specific provisions for transfer of liabilities, the said regis-
tered person shall be allowed to transfer the input tax credit which remains
unutilised in his electronic credit ledger to such sold, merged, demerged,
amalgamated, leased or transferred business in such manner as may be pre-
scribed.
(4) Where any registered person who has availed of input tax credit opts
to pay tax under section 10 or, where the goods or services or both supplied
by him become wholly exempt, he shall pay an amount, by way of debit in
the electronic credit ledger or electronic cash ledger, equivalent to the credit
of input tax in respect of inputs held in stock and inputs contained in semi-
finished or finished goods held in stock and on capital goods, reduced by
such percentage points as may be prescribed, on the day immediately pre-
GST LAW TIMES  23rd July 2020  109