Section 11(6) in The Kerala Value Added Tax Act, 2003
(6)If the input tax of a dealer for a return period is more than the out put tax of that return period, the difference between the input tax and the out put tax shall be first adjusted against any interest, tax or any other amount due or demanded under this Act, from the dealer for any previous return period(s) and then to the tax payable by the dealer on the sales in the course of inter-state trade and the balance, if any, shall be carried forward to the next return period for the purpose of allowing input tax credit in the succeeding return period.Provided that where the excess input tax so carried forward cannot be fully adjusted during the last return period of that year, the excess input tax credit so remaining unadjusted shall be refunded to the dealer as if it were a refund accrued under section 13.
