VAT Input Credit is not available for all types of purchases, there are certain purchases which are in eligible for Input Tax credit Claim. The Eligible and Ineligible Purchases for the purpose of Input Tax Credit are given below :-
è For sale/resale within the state
è For interstate sale (Sale outside the state)
è For being used in the execution of WORKS contract
è For making other zero rated sales
è To be used as capital goods required for manufacture or resale of taxable goods
è To be used as packing materials, raw materials or as consumable stores of the goods intended to be sold within/outside the state or in the course of export of the goods.
è Made From unregistered dealers
è Made From other states (interstate purchases)
è Made From registered dealers opted for composition scheme
è Of non-creditable goods
è Made from outside the territory of India
è Of goods used in the manufacture of exempted goods
è Made from the dealer, where his invoice doesn’t show the tax amount charged separately
è Of goods meant for personal use
è Where there is no evidence or absence of invoice
è Of capital goods where credit is available in parts.
è Of goods to be used as fuel in generation of power
è Of goods meant for branch transfer.