Dear Sir,
Our unit is situated in Nashik (Maharastra), Inputs received us from Umargaon (Gujrath). The Material is Exempt from VAT the VAT is Nil. The Inputs as such clear in Nashik to other party the VAT is Nil or regular VAT tax rate, Kindly guide us.
Tahnks & Regards,
Avinash Bhavsar
Guidance on VAT Exemption for Inputs from Gujarat to Nashik: No VAT or Credit Reversal Needed for Exempt Goods. A participant from Nashik sought guidance on whether VAT applies to inputs received from Umargaon, Gujarat, which are exempt from VAT, when cleared in Nashik. Two replies were provided. The first response clarified that no VAT is applicable if the inputs are exempt. The second response added that if input goods are cleared as such and are VAT-exempt, there is no need to reverse credit on those goods. (AI Summary)
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