One of my client engaged in manufacturing of Hydraulics Machines and also covered under Excise. He got one Export Order during current year.Accordingly He needs Wooden Boxes for packing of such machine being exported.so he purchases such wooden boxes from registered dealer.
Now query is whether my client can claim input vat credit @ 4%+1% on such wooden boxes i.e. packing materials necessary for export purposes or not as per Gujarat VAT Act,2003 or Rules made there under.
Input VAT Credit Available for Wooden Packaging Materials Under Gujarat VAT Act, 2003, If Registered Correctly A client involved in manufacturing hydraulic machines, also subject to excise, received an export order requiring wooden boxes for packing. The query was whether input VAT credit at 4%+1% on these packing materials could be claimed under the Gujarat VAT Act, 2003. The response confirmed that input tax credit is available if the wooden packaging is listed in the client's registration certificate, which must be updated before purchasing any materials. Exports are zero-rated, allowing for input tax credit or exemption/refund on inputs used for manufacturing goods intended for export. (AI Summary)
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