E-Commerce GST Applicability

E-commerce Operator:

1)Section 2(45):- An e-commerce operator : is a person who owns, operates or manages digital or electronic facility or platform for electronic commerce. 

2) Section 2(44) Electronic Commerce: “electronic commerce” means the supply of goods or services or both, including digital products over digital or electronic network;

Levy & Collections of Tax:-section 9(5) of CGST ACT 2017

(5) The Government may, on the recommendations of the Council, by notification, specify categories of services the tax on intra-State supplies of which shall be paid by the electronic commerce operator if such services are supplied through it, and all the provisions of this Act shall apply to such electronic commerce operator as if he is the supplier liable for paying the tax in relation to the supply of such services:

Provided that where an electronic commerce operator does not have a physical presence in the taxable territory, any person representing such electronic commerce operator for any purpose in the taxable territory shall be liable to pay tax:

Provided further that where an electronic commerce operator does not have a physical presence in the taxable territory and also he does not have a representative in the said territory, such electronic commerce operator shall appoint a person in the taxable territory for the purpose of paying tax and such person shall be liable to pay tax.

Have To Insert any notificatioin Issued by govt in this regard

Notification 14/2017-Central Tax (Rate) dated 28 June, 2017 specifies that ‘ecommerce operator’ is liable to pay tax ‘as if he is the supplier liable to pay tax’ and lists the following:

“services by way of transportation of passengers by a radio-taxi, motorcab, maxicab and motor cycle;”

  1. services by way of providing accommodation in hotels, inns, guest houses, clubs, campsites or other commercial places meant for residential or lodging purposes, except where the person supplying such service through electronic commerce operator is liable for registration under clause (v) of section 20 of the Integrated Goods and Services Tax Act, 2017 read with sub-section (1) of section 22 of the said Central Goods and Services Tax Act.

Registration:-

Section 24 of CGST Act 2017:-

  1. Notwithstanding anything contained in sub-section (1) of section 22, the following categories of persons shall be required to be registered under this Act,––( Compulsory registration):-

(i) persons making any inter-State taxable supply;

(iv) person who are required to pay tax under sub-section (5) of section 9;

  1. ix) persons who supply goods or services or both, other than supplies specified under sub-section (5) of section 9, through such electronic commerce operator who is required to collect tax at source under section 52;
  2. x) every electronic commerce operator;:-

Section 52:- Collection of Tax at source:

  1. (1) Notwithstanding anything to the contrary contained in this Act, every electronic commerce operator (hereafter in this section referred to as the “operator”), not being an agent, shall collect an amount calculated at such rate not exceeding one per cent., as may be notified by the Government on the recommendations of the Council, of the net value of taxable supplies made through it by other suppliers where the consideration with respect to such supplies is to be collected by the operator.Explanation.––For the purposes of this sub-section, the expression “net value of taxable supplies” shall mean the aggregate value of taxable supplies of goods or services or both, other than services notified under sub-section (5) of section 9, made during any month by all registered persons through the operator reduced by the aggregate value of taxable supplies returned to the suppliers during the said month

 

Press information bureau Regarding the postponement of provision relating to TDS section 51 and TCS section 52 of CGST/SGST Act 2017:-

With the objective of ensuring smooth rollout of GST and taking into account the feedback received from the trade and industry regarding the provisions of deduction of tax at Source under Section 51 of the CGST / SGST Act 2017 and collection of tax at source under Section 52 of the CGST / SGST Act 2017, the following has been decided :-

The provisions of Tax Deduction at Source (Section 51 of the CGST / SGST Act 2017) and Tax Collection at Source (Section 52 of the CGST/SGST Act, 2017) will be brought into force from a date which will be communicated later.

Persons who will be liable to deduct or collect tax at source will be required to take registration, but the liability to deduct or collect tax will arise from the date the respective sections are brought in force.

The persons who were liable to be registered under clause (ix) of Section 24 of the CGST / SGST Act, 2017 (as they were supplying goods or services through electronic commerce operator who is required to collect tax at source under Section 52) will not be liable to register till the provision of Tax Collection at Source is brought under force.

Section 31(1) :

A registered person supplying taxable goods shall, before or at the time of,—

  • a) removal of goods for supply to the recipient, where the supply involves movement of goods; or
  • b) delivery of goods or making available thereof to the recipient, in any other case,
  • issue a tax invoice
  • showing the description, quantity and value of goods, the tax charged thereon and such other particulars as may be prescribed:

Provided that the Government may, on the recommendations of the Council, by notification, specify the categories of goods or supplies in respect of which a tax invoice shall be issued, within such time and in such manner as may be prescribed.

  • 2) A registered person supplying taxable services shall, before or after the provision of service but within a prescribed period, issue a tax invoice, showing the description, value, tax charged thereon and such other particulars as may be prescribed:

Provided that the Government may, on the recommendations of the Council, by notification and subject to such conditions as may be mentioned therein, specify the categories of services in respect of which––

  • any other document issued in relation to the supply shall be deemed to be a tax invoice; or
  • tax invoice may not be issued:
    • 3) Notwithstanding anything contained in sub-sections (1) and (2)––
      • a) a registered person may, within one month from the date of issuance of certificate of registration and in such manner as may be prescribed, issue a revised invoice against the invoice already issued during the period beginning with the effective date of registration till the date of issuance of certificate of registration to him;
      • b) a registered person may not issue a tax invoice if the value of the goods or services or both supplied is less than two hundred rupees subject to such conditions and in such manner as may be prescribed;
      • c) a registered person supplying exempted goods or services or both or paying tax under the provisions of section 10 shall issue, instead of a tax invoice, a bill of supply containing such particulars and in such manner as may be prescribed:

    Provided that the registered person may not issue a bill of supply if the value of the goods or services or both supplied is less than two hundred rupees subject to such conditions and in such manner as may be prescribed;

    • d) a registered person shall, on receipt of advance payment with respect to any supply of goods or services or both, issue a receipt voucher or any other document,  containing such particulars as may be prescribed, evidencing receipt of such payment;
      • e) where, on receipt of advance payment with respect to any supply of goods or services or both the registered person issues a receipt voucher, but subsequently no supply is made and no tax invoice is issued in pursuance thereof, the said registered person may issue to the person who had made the payment, a refund voucher against such payment;
      • f) a registered person who is liable to pay tax under sub-section (3) or sub-section (4) of section 9 shall issue an invoice in respect of goods or services or both received by him from the supplier who is not registered on the date of receipt of goods or services or both;
      • g) a registered person who is liable to pay tax under sub-section (3) or sub-section (4) of section 9 shall issue a payment voucher at the time of making payment to the supplier.
      • 4) In case of continuous supply of goods, where successive statements of accounts or successive payments are involved, the invoice shall be issued before or at the time each such statement is issued or, as the case may be, each such payment is
      • Subject to the provisions of clause (d) of sub-section (3),  in case of continuous supply of services,––
        • where the due date of payment is ascertainable from the contract, the invoice shall be issued on or before the due date of payment;
        • where the due date of payment is not ascertainable from the contract, the invoice shall be issued before or at the time when the supplier of service receives the payment;
        • where the payment is linked to the completion of an event, the invoice shall be issued on or before the date of completion of that
      • In a case where the supply of services ceases under a contract before the completion of the supply, the invoice shall be issued at the time when the supply ceases and such invoice shall be issued to the extent of the supply made before such
      • Notwithstanding anything contained in sub-section (1), where the goods being sent or taken on approval for sale or return are removed before the supply takes place,  the invoice shall be issued before or at the time of supply or six months from the date of removal, whichever is

      Explanation.––For the purposes of this section,

ANNUAL COMPLIANCE

FILING BASED COMPLIANCE

  • Section 92 (Annual Return)- Every Company shall prepare its Annual Return in Form MGT-7 within 60 days of holding Annual General Meeting.

Signing Provision- Annual Return shall be digitally signed by a Director and the Company Secretary; or where there is no Company Secretary by a Company secretary in Practice.

If paid up capital is more than Rs. 10 crore or turnover is more than Rs. 50 crore a copy of Form MGT-8 (Certificate by Practicing Professional) is required to be annexed in Form MGT-7.

An Extract of Annual Return (Form MGT-9) shall form part of board’s Report.

  • Section 137( Copy of financial Statements to be filed with Registrar)- A copy of financial statements, including CFS, if any along with all the necessary annexures such as-

-Auditor’s Report;

-Director’s Report along with Form MGT-9 (Extract of Annual Return),

-CSR Policy, if any

-Form AOC-1, Statement containing salient features of the financial statement of subsidiaries/associate companies/joint ventures, if any

shall be filed with the Registrar in Form AOC-4 or Form AOC-4 XBRL as the case may be, within 30 days of the AGM.

Holding company is also required to file consolidated financial statements in Form AOC-4 CFS

  • Section 139 (Appointment of Auditor) – Every company shall appoint statutory auditor for a period of 5 years and intimate the registrar in Form ADT-1.
  • In the subsequent AGM shareholders will ratify the appointment of Auditor, hence no need to file Form ADT-1
  • Section 170 (Registers of directors and Key Managerial Personnel and their shareholding)- A Return containing particulars of appointment or any change in director and Key Managerial Personnel shall be filed with Registrar within thirty (30) days of appointment or change in Form DIR-12.
  • Section 148 (Central Government to specify audit of items of cost in respect of certain Companies) Cost audit is applicable on class of companies (http://www.mca.gov.in/Ministry/pdf/rules_2_30062014.pdf) as specified by the central Government. T Shirt Versace Pas Cher The Audit shall be conducted by a Cost Accountant in Practice who shall be appointed by Board on such remuneration as may be decided by board and ratified by shareholders subsequently.

Intimation of appointment of cost auditor by the company to Central Government be made in Form CRA-2

NON-FILING BASED COMPLIANCE

Following compliances are required to be done and kept as the records with the Company for future reference.

  • Sec 184 (1), Rule 9 Chapter XII (Disclosure of Interest by Directors) Every Director shall disclose his interest in any company, body corporate, firms or other association of individuals by giving a notice in writing in Form MBP-1 in First meeting of BOD in each financial year and whenever there is any change in his interest or at the time of getting inducted as director on the Board.
  • Section 88 (Registers to be maintained)- Following registers are to be maintained by a private company-
  1. MGT-1-Register of members including details of shareholding and share transfer details;
  2. MGT-2- Register of Debenture holders/ other than security holders;
  3. Register of directors and Key Managerial Personnel ;
  4. MBP-2-Register of loans, guarantee, security and acquisition made by the company;
  5. MBP-3- Register of investments not held in its own name by the company;
  6. MBP-4-Contracts or agreements with any related party under section 188 or in which any director is concerned or interested under sub- section (2) of section 184;
  7. MBP-4(2)- Register of contracts with related party and contracts and Bodies etc.  in which directors are interested;
  8. Register of details of securities held by Directors and Key Management Personnel;
  9. CHG-7- Register of Charges
  • Section 139 (Appointment of Auditor) – Every company need to correspond with Auditor at the time of his appointment or ratification of his continuation. Usually the correspondence between the company and auditors is as under:

(a) At the time of appointment:

  • Letter by the company seeking consent, qualification and eligibility of the auditor;
  • Receipt of Consent to act as Auditor and Eligibility certificate from auditor;
  • Intimation to auditor after conclusion of AGM about his appointment and remuneration

(b) At the time of ratification:

  • Letter by the company seeking consent, qualification and eligibility of the auditor about his continuation as Statutory Auditor;
  • Receipt of Consent to act as Auditor and Eligibility certificate from auditor;
  • Intimation to auditor after conclusion of AGM about his ratification and remuneration
  • Section 134 (Director’s Report) – Private company is required to prepare its Director’s Report as per the provisions of section 134 of the Act.

Signing Provision- Board’s report and any annexures thereto shall be signed by the ‘Chairperson’ authorized by the board, and at lease by two directors where he is not authorized.

  • Section 101 & SS-II (Notice of General Meeting)- At least twenty-one(21) days notice of every general meeting shall be given to –
  1. Every member of the company, legal representative of any deceased member or the assignee of an insolvent member;
  2. The auditor of the company;
  3. Every director of the company

specifying the place, date, date and hour of the meeting and shall contain a statement of the business to be transacted at the meeting.

  • Section 136 (Right of the member to have copies of audited financial statement)- Company shall send to every member of the company copy of financial statement, including CFS, if any, auditor’s report, director’s report, not less than 21 days before the date of its Annual General Meeting.
  • Section 173 & SS-1 (Board Meetings)- Every Company shall hold at least four meetings of BOD every year in such a manner that not more than 120 days shall intervene between two consecutive meetings.
  1. Company shall hold at least one meeting in every calendar quarter.
  2. Notice in writing of every Meeting shall be given to every Director by hand or by speed post or by registered post or by courier or by facsimile or by e-mail or by any other electronic means.
  • Section 118 & Rule 25 of Chapter VII and SS-3 (Minutes of Proceedings of General Meeting, meeting of Board of Board of Directors and other meeting and resolution passed by postal ballot)- A distinct minute book shall be maintained for each type of meeting namely:-
  1. General meetings of the members;
  2. Meetings of creditors;
  3. Meetings of the board; and
  4. Meetings of each of the committees of the board
  • Minutes should begin with the number and type of the Meeting, name of the company, day, date, venue, time of commencement and conclusion.
  • Each item of business taken up at the Meeting should be appropriately numbered.
  • Minutes, once entered in the Minutes Book, should not be altered.
  • Minutes of all Meetings should be preserved permanently.
  • Section 148 (Central Government to specify audit of items of cost in respect of certain Companies) – Company need to correspond with cost auditor at the time of his appointment or ratification of his remuneration.  Usually the correspondence between the company and cost auditor is as under:

(a) At the time of appointment:

  • Letter by the company seeking consent, qualification and eligibility of the cost auditor;
  • Receipt of Consent to act as Auditor and Eligibility certificate from auditor;
  • Intimation to auditor after conclusion of board meeting about his appointment and remuneration

(b) At the time of ratification of remuneration by members:

  • Intimation to auditor after conclusion of meeting of members about ratification of his remuneration
  • ANNUAL COMPLIANCE NOT REQUIRED BY PRIVATE COMPANY
  • Section 121 (Report on AGM) – This section is not applicable on Private Companies and applicable only on Listed companies.
  • Section 204 (Secretarial Audit)- Private companies are not required to comply with the requirements of secretarial audit as Secretarial Audit is applicable on listed companies and public companies having paid up share capital of Rs.50 crore or more or turnover Rs. 250 crore or more.
  • Approval of Accounts by Board- Private Companies are not required to file Form MGT-14 in respect of Approval of accounts by board vide Notification dated 05 June, 2015.

SECTION 8 COMPANIES REGISTERD AS PRIVATE LIMITED COMPANY All the compliances are same in case of Section 8 Company except the followings:

  • Section 8 Companies should prepare Income and Expenditure Account instead of Profit and Loss Account as per clause (ii) of sub-section 40 of Section 2 of Companies Act, 2013
  • Section 8 company can call its Annual General Meeting by giving a fourteen days notice.

MASTER ALERTS-

While completing annual compliances, one should carefully go through the followings facts as each one of them may have serious repercussions in terms of penalties and lapses:

  • Subsidiary, Joint Venture and Associate Companies: While preparing Annual Filing Document Company should judiciously analyze its investment/ shareholding in other companies so as to determine the relationship as subsidiary, joint venture and associate companies.

Details of financial position of Subsidiary Company is required to be given in Form AOC-1 (Part-A)

Details of financial position of Joint Venture and Associate Companies is required to be given in Form AOC-1 (Part-B)

  • Holding Company: While preparing Annual documents care should be taken and details of Holding company is required to be mentioned wherever applicable.

Holding company is required to file consolidated financial statements in Form AOC-4 CFS

  • Related Party Transactions and their limits for next year: Disclosure regarding related party transaction undertaken during the year is required to be made in Form AOC-2.

For taking approval from shareholders for related party transaction to be undertaken in next year a resolution alongwith explanatory statement is required to be included in Notice of Annual General Meeting indicating name of related party, nature of relationship and amount of transaction.

  • Directors appointed during the year as Additional Directors: Directors who were appointed as additional directors during previous financial year deemed to have vacated their office at the Annual general Meeting held after their appointment, so their appointment need to be regularized by including the resolution of Regularization of Director in Notice of Annual General Meeting alongwith explanatory statement and approve the same by shareholders.

Form DIR-12 is required to be filed with registrar for Regularization of Additional Director.

Some Important definitions-

  • Associate- In relation to another company, means a company in which that other company has a significant influence, but which is not s subsidiary company of the company having such influence and includes a joint venture company
  • Subsidiary- Subsidiary company or subsidiary in relation to any other company (that is to say the holding company), means a company in which the holding company-
  1. Controls the composition of the Board of directors; or
  2. Exercises or controls more than one-half of the total share capital either at its own or together with one or more of its subsidiary companies.

FORSEEABLE FUTURE: Government of India is taking steps for ‘Ease of Doing Business’.This is very easy to predict that annual compliances will also reduce in the span of next two / three years. Entrepreneurs having private limited companies shall neither hurry to convert their existing companies into LLP nor to close down the entity using Simplified Exit Scheme.

Invoicing under GST

GST defines a transaction as ‘Supply’ when there is a transfer, exchange, rental, lease, barter, disposal or license of goods or services. Whenever a transaction takes place, a tax invoice has to be issued depending on the occurrence of any such event or within a prescribed time limit. Hence, every taxpayer registered under the GST network shall be required to issue a tax invoice for the supply of goods or services.

Tax invoices have to be raised under certain circumstances. In the case of supply of goods, the invoices shall be raised within the prescribed time as enumerated below.

  • When there is actual movement of goods, then before or at the time of removal of such goods.
  • If there is no movement involved, then earlier of delivery or making available of such goods.
  • In case of successive issuance of goods, then earlier of each such issuance.
  • On the receipt of goods when on GST is applicable on a reverse charge basis
  • When goods are sold on an approval basis, then earlier of 6 months from the removal date or before or at the time of such removal.
  • Similarly, in the case of supply of services, the invoice has to be issued as follows, within the mentioned time.
    • Within 30 days from the actual supply
    • In case of continuous supply where due date can be ascertained, then 30 days from such due date
    • In case of continuous supply where due date cannot be ascertained, then 30 days from actual payment date
    • In case of cessation of supply before the contract ends, then at the time of such cessation.

    The due date of 30 days is 45 days in case of banks and other financial institutions.

    These invoices have to be issued in TRIPLICATE in the case of supply of goods, original for the recipient, duplicate for the transporter and triplicate copy for the supplier. Likewise, in case of supply of services, the invoices have to be issued in DUPLICATE, where the original will be meant for the recipient and the duplicate copy will be for the supplier.

    How to Create GST Invoice

    The Government of India has come out with a sample GST Invoice format. Slip Calvin Klein Outlet A sample format is shown below. It is better to issue invoices on the same lines as the example since your Input Tax Credit largely depends on the Invoice Number and its proper reporting. Calzoncillos Calvin Klein Hombre Tangas de Calvin Klein The serial number of the invoice forms the basis of mismatch or matching the invoices between the supplier and the receiver, giving a seamless, hassle-free credit flow.

  • There is certain crucial information that needs to be mentioned mandatorily in the GST invoice. Ropa Interior Calvin Klein Barata These are:
    • Name, address and the GSTIN of the supplier
    • The nature of invoice (tax invoice, supplementary invoice or revised invoice)
    • Invoice number (this shall be a consecutive alpha-numeric or numeric series, specific for a financial year)
    • Date of Invoice
    • Name, address and the GSTIN of the recipient
    • Where the value of the goods exceeds Rupees Fifty Thousand and the recipient is an unregistered person, then name and address of such recipient and the delivery address of the consignment.
    • Description of the goods or services
    • HSN code of the goods or the Accounting Code of the Services
    • Quantity of the goods or services
    • Total value of the goods or services
    • Rate of Tax on each item
    • Tax amount charged, on account of CGST, IGST, and SGST to be shown separately under different columns
    • Name of the supplying State and the place of supply
    • Place of delivery
    • A statement mentioning whether reverse charge is applicable or not
    • Trade Discounts not forming part of value of the goods, if any
    • Signature in physical form or Digital Signature of the supplier or an authorized person, duly certifying the invoice

    In addition to the above particulars, an export invoice shall include the following.

    • A mandatory statement mentioning these specific words – “SUPPLY MEANT FOR EXPORT ON PAYMENT OF IGST” or “SUPPLY MEANT FOR EXPORT UNDER BOND WITHOUT PAYMENT OF IGST.”
    • Country of destination
    • Delivery address
    • The Number and date of application of form for removal, i.e. Form ARE-1
    • Likewise, when an Input Service Distributor issues the invoice, then “Amount of credit distributed” shall also be added to the invoice instead of the rate and value of the goods or services.

      If you are a Goods Transport Agency, you are a critical link in the supply chain and has to include the following in your invoice.

      • Name and address of the consignor and the consignee
      • Registered Vehicle number
      • Gross weight of the consignment
      • Place of Origin
      • Destination
      • GSTIN of the person liable to pay tax

      The transporter does not require to the Duplicate copy of the Invoice. Instead, they can opt for Invoice Reference Number, which can be generated by the supplier by uploading the tax invoice onto the GST Portal. The portal shall generate a number that is valid for 30 days from such date.

      Apart from the tax invoice, other important documents include Supplementary Invoice, Revised Invoice, Debit or Credit Notes, and Bill of Supply. Let us discuss each one in details.

      Bill of Supply

      When a registered supplier makes a supply of exempted goods or services, or the supplier is registered under the composition scheme, then he has to issue a Bill of Supply instead of a tax invoice.

    • Supplementary Invoice / Debit Note

      Whenever there is an upward revision in prices of a good or service supplied earlier and the same was chargeable to GST, then the supplier is liable to issue a supplementary invoice to the recipient. The said supplementary invoice should be raised within 30 days from the date of such price revision.

    • Credit Note

      Just like the debit note where there is an upward revision in price, credit note has to be issued when there is a downward revision of price. Culottes Calvin Klein Baratos GST should have been charged in the previous transaction. Bragas Calvin Klein Baratas The credit note has to be issued on or before 30th September of the next financial year or before filing the annual return of GST, whichever is earlier.

      The contents of these documents are the same as that of tax invoice. The only major difference is that the nature of the invoice must be mentioned in Bold specifically on top of the invoice. For e.g. Boxer Mujer Calvin Klein “SUPPLEMENTARY INVOICE,” “DEBIT NOTE” etc.

      All the above documents, including the tax invoice, has to be maintained for 6 years (currently prescribed by the GST council). Bikini Calvin Klein 2016 Thus, it requires a very strong IT system that records and maintains such a database for the prescribed time.

    • Cross – Referencing of Invoices

      Since the invoice forms a crucial part in claiming credit for the GST paid therein, it is obligatory to upload returns on time so that the credit flows to the end customer seamlessly.

Input Tax Credit

a) Input Tax Credit (ITC) is the backbone of the GST regime.

b) GST is nothing but a value added tax on goods & services combined.

c) It is these provisions of Input Tax Credit that make GST a value added tax i.e.,  collection of tax at all points after allowing credit for the inputs.

d) The procedures and restrictions laid down in these provisions are important to make sure that there is seamless flow of credit in the whole scheme of transition without any misuse.

e) Thus, the clarity of rules of availment and utilization will have significant impact on making GST a taxpayer-friendly tax.

f) One of the biggest advantages expected from the implementation of GST Act is that it would remove cascading effect by facilitating seamless flow of credit.

g) This would be given effect by providing for the availment of ITC to the purchasing dealer in respect of the GST paid by the supplying dealer and thus by removing the restrictions placed in the present Cenvat credit rules on availment of credit which lead to break in the credit chain and consequent cascading effect which
further leads to increase in cost of goods and services.

h) Thus linking of invoice to invoice would eliminate any ambit for revenue leakage.Chapter V of the model law deals with ITC mechanism provisions.

i) ITC has been defined as credit of IGST/CGST/SGST charged on any supply of goods and or services used or intended to be used in the course or furtherance of business and includes the tax payable under revserse charge .

j) Registered taxable person shall be eligible to avail ITC credited to the e-credit ledger subject to condition prescribed without restrictions of availment (such as 50% of capital goods).

Conditions for availing of ITC:

– Taxpaying documents such as tax invoice, debit note etc.,
– Goods / service should have been received/deemed to be received by the taxable person
– Tax charged on the invoice and should have been paid to the credit of government.
– Return should have been furnished by the tax payer.
– Credit for goods against an invoice received in lots / installments can be availed only on last lot in
installment.
– The timelines for entitlement of credit against a particular invoice shall lapse on the expiry of one
year from date of issue of invoice.

Ways / Manner for availing/payment of ITCby a registered person:
– Tax credit entitlement on stock held and contained in semi-finished and finished goods
o On the day immediately preceding the date of registration in case person obtaining voluntarily registration
o On the day immediately preceding the date from which the person becomes liable to pay tax,  in case person applied for registration within 30 days from the date of liability to pay tax or in case person ceases to pay composition tax and becomes liable to pay tax. under normal provision.

Proportionate credit in case of goods/services used partially for business use and partially for non-business
– Proportionate credit in case goods/services are used partly for effecting taxable supplies and
zero rated supplies and partly for effecting nontaxable supplies and exempt supplies

Transfer of unutilized credit allowed in case of change in constitution of person due to sale,merger,  amalgamation or transfer of business with provision for transfer of liabilities.
– Switch over from regular scheme to composite scheme by debiting cash ledger of amount equivalent to ITC on stock.