Section 18 in The Rajasthan Value Added Tax Act, 2003
18. Input Tax Credit.
(1)Input tax credit shall be allowed, to registered dealers, other than the dealers covered by sub-section (2) of section 3 or section 5, in respect of purchase of any taxable goods made within the State from a registered dealer to the extent and in such manner as may be prescribed, for the purpose of-(a)sale within the State of Rajasthan; or(b)sale in the course of Inter-state trade and commerce; or(c)sale in the course of export outside the territory of India; or(d)being used as packing material of goods, other than exempted goods, for sale; or(e)being used as raw material [except those as may be notified by the State Government,] [Inserted by Rajasthan Act No. 3 of 2007, dated 10.4.2007.] in the manufacture of goods other than exempted goods, for sale within the State or in the course of Inter-state trade or commerce; or(f)[being used as packing material of goods or as raw material in manufacture of goods for sale] [[Substituted for the following words vide Rajasthan Act 4 of 2007, Published in Rajasthan Government Gazette Extraordinary, Part IV-A, dated 10-4-2007, page 1(18) :-'being used as raw material in the manufacture of goods for sale'.]] in the course of export outside the territory of India; or(g)[ being used in the State as capital goods in manufacture of goods other than exempted goods,] [Substituted by Rajasthan Act No. 15 of 2011, dated 11.4.2011.]however, if the goods purchased are used partly for the purposes specified in this sub-section and partly as otherwise, input tax credit shall be allowed provisions to the extent they are used for the purposes specified in this sub-section.(2)[ The input tax credit under sub-section (1) shall be allowed only after verification of the deposit of tax payable by the selling dealer in the manner as may be notified by the Commissioner.] [Substituted by Rajasthan Finance Act, 2014 (Act No. 14 of 2014), dated 31.7.2014.](3)Notwithstanding anything contained in this Act, no input tax credit shall be allowed on the purchases-(i)from a registered dealer who is liable to pay tax under sub-section (2) of section 3 or who has opted to pay tax under section 5 of this Act; or(ii)of goods made in the course of import from outside the State; or(iia)[ of goods taxable at first point in the series of sales, from a registered dealer who pays tax at the first point; [Inserted by Rajasthan Act No. 15 of 2011, dated 11.4.2011.]Explanation. - For the purpose of this clause, "first point in the series of sales" means the first sale made by a registered dealer in the State; or and](iii)where the original VAT invoice or duplicate copy thereof is not available with the claimant, or there is evidence that the same has not been issued by the selling registered dealer from whom the goods are purported to have been purchased; or(iv)of goods where invoice does not show the amount of tax separately; or(v)where the purchasing dealer fails to prove the genuineness of the purchase transaction [XX] [Deleted the words 'by producing the selling dealer or otherwise' by Rajasthan Act 4 of 2006, Published in Rajasthan Government Gazette Extraordinary, Part IV-A, dated 31-3-2006, page 61(47) [1-4-2006].], on being asked to do so by an officer not below the rank of Assistant Commercial Taxes Officer authorised by the Commissioner.(3A)[ Notwithstanding anything contained in this Act, where any goods purchased in the State are subsequently sold at subsidized price, the input tax allowable under this section in respect of such goods shall not exceed the output tax payable on such goods.] [Inserted by Rajasthan Act No. 15 of 2011, dated 11.4.2011.](4)The State Government may notify cases in which partial input tax credit may be allowed subject to such conditions, as may be notified by it.
