https://www.taxtmi.com/article/detailed?id=1797 Whether restricting input tax credit on goods purchased within a State and sent outside the State otherwise than by sale operates as impermissible indirect taxation of inter state transactions is the core issue. The article contends that statutory retention of input tax credit functions as a back door tax beyond State competence, producing discriminatory treatment when the retained rate exceeds the applicable central tax rate, and calls for judicial scrutiny and realignment of retained ITC rates to avoid indirect taxation. en-us Mon, 02 Jul 2012 11:35:56 +0530 Mon, 02 Jul 2012 11:35:56 +0530 TaxTMI RSS Generator https://www.taxtmi.com/article/detailed?id=1797 Whether restricting input tax credit on goods purchased within a State and sent outside the State otherwise than by sale operates as impermissible indirect taxation of inter state transactions is the core issue. The article contends that statutory retention of input tax credit functions as a back door tax beyond State competence, producing discriminatory treatment when the retained rate exceeds the applicable central tax rate, and calls for judicial scrutiny and realignment of retained ITC rates to avoid indirect taxation. Articles Value Added Tax - VAT and CST Mon, 02 Jul 2012 11:35:56 +0530 https://www.taxtmi.com/article/detailed?id=1797