Section 9(5) in The Gujarat Value Added Tax Act, 2003
(5)[ Where a dealer liable to pay tax under this Act purchases taxable goods sale of which is zero rated under section 5A and the goods so purchased by him are -(i)consigned or dispatched for branch transfer or to his agent outside the State,(ii)used as raw materials in the manufacture or in the packing of goods so dispatched outside the State in the course of branch transfer or consignment or to his agent outside the State,(iii)used as fuel for the manufacture of goods,(iv)used as raw materials or capital goods in manufacture of goods specified in Schedule I or goods exempt from the whole of the tax by a notification under sub-section (2) of section 5 or in the packing of goods so manufactured,(v)used as fuel or capital goods in generation of electrical energy including captive power,(vi)not connected with his business,(vii)used as fuel in motor vehicles,(viii)used as capital goods in transfer of property in goods (whether as goods or in some other form) involved in execution of works contract,(ix)used for transferring the right to use for any purpose (whether or not for a specified period), for cash, deferred payment or other valuable considerations, or(x)used for any other purpose as may be specified by the State Government by notification in the Official Gazette, then such dealer shall be liable to pay purchase tax on the turnover of such purchases at the rate set out against each of such goods specified in Schedule II.
