Restriction on input tax credit: closing stock credit carried forward until sale, with specified exceptions and verification. Rule 6A restricts input tax credit by requiring closing stock credit to be carried forward until sold and entitles credit only to the proportion of goods sold in a tax period; exceptions allow refunds or immediate credit for sales already effected, exports, inter-state trade, and manufacturers buying higher-taxed raw materials while selling manufactured goods at a lower tax rate. Assessing authorities must verify clause (g) conditions before allowing credits. Section 10(5) reductions apply to credit notes for discounts and similar adjustments, excluding ordinary business losses, and sales under administered oil company prices are exempted from section 10(5). Rule 34 requires clause (g) verification before refunds.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Restriction on input tax credit: closing stock credit carried forward until sale, with specified exceptions and verification.
Rule 6A restricts input tax credit by requiring closing stock credit to be carried forward until sold and entitles credit only to the proportion of goods sold in a tax period; exceptions allow refunds or immediate credit for sales already effected, exports, inter-state trade, and manufacturers buying higher-taxed raw materials while selling manufactured goods at a lower tax rate. Assessing authorities must verify clause (g) conditions before allowing credits. Section 10(5) reductions apply to credit notes for discounts and similar adjustments, excluding ordinary business losses, and sales under administered oil company prices are exempted from section 10(5). Rule 34 requires clause (g) verification before refunds.
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