Allowability of input tax credit on diesel

[S.C. WADHWA]

Dear Sir,

We are manufacturer in food items in Haryana and paying vat tax on the purchase of diesel. Pls advise whether we are ellible to take input tax credit of vat tax paid on the purcchase of diesel which used in generator for the generation of elctricity which used for running the plant. If yes from which date.

Regards,

WADHWA

AI Summary

Input Tax Credit Not Allowed on Diesel for Generators Under Central Excise Rules and HVAT Act Schedule E A manufacturer in Haryana inquired about the eligibility for input tax credit on VAT paid for diesel used in generators for electricity production. A respondent clarified that under central excise rules, input tax credit cannot be claimed on high-speed diesel or petrol, as they are excluded from the definition of 'input.' Another participant mentioned that under the HVAT Act, input tax credit on fuels might be possible, but later clarified that it is not allowed for goods listed in Schedule E, including petroleum products used as fuel.