REVERSAL OF CREDIT IS REQUIRED TO BE DONE IN FOLLOWING CASES

1. When registered person opts out from normal scheme to composition scheme, credit on stocks on the relevant date has to be reversed.
2. When registered person gets his registration cancelled due to closure of business or goods and services dealt with become exempt or nil rated, credit on stocks on the relevant date has to be reversed. 
3. When capital goods on which credit has been taken are supplied after use.
4. When consideration for supplies is not made within 180 days of issuance of invoice.
5. When there is mismatch of returns of supplier and recipient.
6. When credit has been availed twice.
7. When credit has been availed on common inputs, reversal has to be to the extent of credit attributable to exempted supplies or supplies for non-business purpose.
8. When capital goods or plant and machinery are supplied after use, credit taken reduced by five percentage points per quarter of a year or part thereof from the date of invoice etc. has to be reversed. However this amount should not be less than tax on transaction value. However in case of refractory bricks, moulds and dies, jigs and fixtures the taxable person may pay tax on the transaction value.