Inputs As Such Clear

[Avinash Bhavsar]

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

[YAGAY and SUN]

Removal of inputs as such will not attract any VAT if the inputs are exemted from payment of VAT.

[Vivek Harsh]

When input goods are cleared as such credit on such goods to be reversed. When input good itself are exempt from vat question of reversal do not arise.

AI Summary

Input VAT treatment: exempt inputs cleared as such do not attract VAT and require no credit reversal.
If input goods are VAT-exempt (nil VAT), their clearance as such does not attract VAT, and because no VAT was payable on acquisition the obligation to reverse input tax credit in respect of those exempt inputs does not arise.