(1)If the input tax credit of a registered dealer (other than an exporter selling goods outside the territory of India) determined under section 17 of this Act for a period exceeds the tax liability for that period, the excess credit shall be set off against any outstanding tax, penalty or interest under this Act.(2)The excess input tax credit after adjustment under sub-section (1) may be carried over as an input tax credit to the subsequent period or periods.(3)In case where input tax credit is carried forward, a quarterly credit statement may be submitted by the dealer concerned and the claims may be reconciled accordingly.
