Input tax credit on Rice Husk and diesel

[S.C. WADHWA]

Dear Expert,

We are manufacturer registered with Haryana Vat Tax.
To get the goods manufactured, we used steamed
generated through boiler by using Rice Husk as fuel.
And diesel used in generator for generating electricity
to run the machines.
Now my query is whether we are eligibal to get input
tax credit on the consumption of Rice Husk and diesel
which purchases are being made duly Vat Tax paid.
Please give your expert opinion alongwith any circular/
notification etc. REGARDS, WADHWA

[Ganeshan Kalyani]

On consumption of rice husk the credit is admissible. credit is not allowed on diesel.

AI Summary

Input Tax Credit Eligibility: Rice Husk Allowed, Diesel Not Allowed for Manufacturer under Haryana VAT. A manufacturer registered under Haryana VAT inquires about eligibility for input tax credit on rice husk and diesel used in production processes. They seek clarity on whether tax credit can be claimed for these inputs, given that VAT has been paid on their purchase. The expert response indicates that input tax credit is admissible for rice husk consumption but not for diesel.