Only taxable person can claim ITC
Note: Registered person or casual trader can not claim ITC
ITC is available only against Input tax on taxable goods
Issue: What if goods no longer remain taxable ?
Note: As per Rule 21(4), if some goods are lying as input or output in the stock of a taxable, and such goods become tax free from a particular date, no ITC shall be admissible to taxable person on sale of goods lying in the stock or on using the the goods as input for making such tax free goods
Further as per Rule 21(6), where ITC has already been availed of by a taxable person against the purchase of goods which are used in mfg. tax free goods or are disposed off otherwise than by way of sale, ITC already availed shall be reversed. If as a result of reversal there is –ve ITC, it shall become payable forthwith.
There is no restriction in VAT law that ITC shall be available only against goods mentioned in registraiton certificate only.
Note: Registered person or casual trader can not claim ITC
ITC is available only against Input tax on taxable goods
Issue: What if goods no longer remain taxable ?
Note: As per Rule 21(4), if some goods are lying as input or output in the stock of a taxable, and such goods become tax free from a particular date, no ITC shall be admissible to taxable person on sale of goods lying in the stock or on using the the goods as input for making such tax free goods
Further as per Rule 21(6), where ITC has already been availed of by a taxable person against the purchase of goods which are used in mfg. tax free goods or are disposed off otherwise than by way of sale, ITC already availed shall be reversed. If as a result of reversal there is –ve ITC, it shall become payable forthwith.
There is no restriction in VAT law that ITC shall be available only against goods mentioned in registraiton certificate only.
