Vat
This query is : Resolved
11 October 2013
Gud Evening
Please help regarding VAT and CST
please provide any notification or provision regarding purchase disallwed in VAT/CST
Please help regarding VAT and CST
please provide any notification or provision regarding purchase disallwed in VAT/CST
12 October 2013
query is not clear. please elaborate in detail
12 October 2013
Didn't understand your query completely but still hoping this may resolve your query:
Purchases not eligible for Input Tax Credit
Input tax credit may not be allowed in the following cases:
a)purchases from unregistered dealers;
b)purchases of goods as may be notified by the State Government;
c)purchases from registered dealer who opt for composition scheme under the provisions of the Act;
d)purchases of goods where invoice does not show the amount of tax separately;
e)purchases of goods, which are being utilized in the manufacture of exempted goods;
f)purchase of goods used for personal use/ consumption or provided free of charge as gifts
g)goods imported from outside the territory of India
h)goods imported from other States viz. inter- State purchases.
Purchases not eligible for Input Tax Credit
Input tax credit may not be allowed in the following cases:
a)purchases from unregistered dealers;
b)purchases of goods as may be notified by the State Government;
c)purchases from registered dealer who opt for composition scheme under the provisions of the Act;
d)purchases of goods where invoice does not show the amount of tax separately;
e)purchases of goods, which are being utilized in the manufacture of exempted goods;
f)purchase of goods used for personal use/ consumption or provided free of charge as gifts
g)goods imported from outside the territory of India
h)goods imported from other States viz. inter- State purchases.
12 October 2013
sorry for that
i wanna know, there is any rule/notification regarding reversal of ITC On difference in days (invoice date and good receipt date),
if there is any provision/rule/notification, then how many days assumed for that
i wanna know, there is any rule/notification regarding reversal of ITC On difference in days (invoice date and good receipt date),
if there is any provision/rule/notification, then how many days assumed for that
02 August 2025
Thank you for clarifying your query. You're asking whether **Input Tax Credit (ITC)** under **VAT/CST laws** is subject to reversal or disallowance **due to a delay between invoice date and goods receipt date**, and whether any specific number of days is prescribed for this.
### ✅ Here's the clarification:
### 📌 **General Rule under VAT Acts (State-specific)**
There is **no universal provision under CST/VAT laws across India** that directly mandates **reversal of ITC based purely on a difference in days between invoice date and goods receipt date**.
However, **state-specific VAT laws** may impose **conditions** around:
* **Proof of actual receipt of goods**
* **Possession of valid tax invoice**
* **Use of goods for taxable sales**
* **Timely accounting and matching in returns**
---
### 🟠 Example: **Maharashtra VAT (MVAT) Rules**
As per **MVAT Rules**, the dealer is eligible for ITC **only when the goods are received and used for taxable sales**. There's **no specific number of days** mentioned after invoice date within which goods must be received. But:
* **Input tax is allowed only when the dealer receives the goods along with a valid tax invoice**.
* If goods are not received, or not used in taxable sales, or if invoices are not in proper format, **ITC can be disallowed**.
📚 **Rule 52(1)** of MVAT Rules:
> "A registered dealer shall be allowed to claim input tax credit on purchases of goods which are used in the course of business and for making taxable supplies and the tax invoice shows the amount of tax separately."
---
### 🟢 Related Clarifications in Other States:
* In some states like **Karnataka or Gujarat**, commercial tax officers have issued **departmental circulars** advising verification of delayed ITC claims, but these are mostly **administrative in nature**, not legal restrictions unless formally notified.
---
### ❌ No Fixed Number of Days
There is **no standard rule such as “7 days,” “30 days,” etc.** for the gap between invoice date and receipt date to disallow ITC under VAT or CST laws, unless specified in departmental instructions for audit scrutiny purposes.
---
### ✅ Best Practices to Avoid ITC Issues:
1. **Ensure goods are received with proper tax invoice.**
2. **Book purchases in the same tax period as receipt.**
3. **Maintain GRN (Goods Receipt Note)** or transport documentation to prove receipt.
4. **Cross-verify purchases in return annexures (e.g., J1/J2 in Maharashtra).**
---
### 📌 Summary Answer
> ❓ Is there any **rule/notification** that **disallows VAT/CST purchases** or **requires ITC reversal** based on difference in **invoice date and goods receipt date**?
✅ **No specific rule or number of days is prescribed** in VAT/CST laws across states. However, ITC is only allowed if:
* Goods are actually received;
* Tax invoice is available;
* Goods are used for taxable sales.
Discrepancies can lead to scrutiny, but **delay alone** does not automatically disallow ITC unless receipt is not proved or compliance conditions are violated.
---
If you tell me your **state**, I can check any state-specific circular or notification if it exists.
### ✅ Here's the clarification:
### 📌 **General Rule under VAT Acts (State-specific)**
There is **no universal provision under CST/VAT laws across India** that directly mandates **reversal of ITC based purely on a difference in days between invoice date and goods receipt date**.
However, **state-specific VAT laws** may impose **conditions** around:
* **Proof of actual receipt of goods**
* **Possession of valid tax invoice**
* **Use of goods for taxable sales**
* **Timely accounting and matching in returns**
---
### 🟠 Example: **Maharashtra VAT (MVAT) Rules**
As per **MVAT Rules**, the dealer is eligible for ITC **only when the goods are received and used for taxable sales**. There's **no specific number of days** mentioned after invoice date within which goods must be received. But:
* **Input tax is allowed only when the dealer receives the goods along with a valid tax invoice**.
* If goods are not received, or not used in taxable sales, or if invoices are not in proper format, **ITC can be disallowed**.
📚 **Rule 52(1)** of MVAT Rules:
> "A registered dealer shall be allowed to claim input tax credit on purchases of goods which are used in the course of business and for making taxable supplies and the tax invoice shows the amount of tax separately."
---
### 🟢 Related Clarifications in Other States:
* In some states like **Karnataka or Gujarat**, commercial tax officers have issued **departmental circulars** advising verification of delayed ITC claims, but these are mostly **administrative in nature**, not legal restrictions unless formally notified.
---
### ❌ No Fixed Number of Days
There is **no standard rule such as “7 days,” “30 days,” etc.** for the gap between invoice date and receipt date to disallow ITC under VAT or CST laws, unless specified in departmental instructions for audit scrutiny purposes.
---
### ✅ Best Practices to Avoid ITC Issues:
1. **Ensure goods are received with proper tax invoice.**
2. **Book purchases in the same tax period as receipt.**
3. **Maintain GRN (Goods Receipt Note)** or transport documentation to prove receipt.
4. **Cross-verify purchases in return annexures (e.g., J1/J2 in Maharashtra).**
---
### 📌 Summary Answer
> ❓ Is there any **rule/notification** that **disallows VAT/CST purchases** or **requires ITC reversal** based on difference in **invoice date and goods receipt date**?
✅ **No specific rule or number of days is prescribed** in VAT/CST laws across states. However, ITC is only allowed if:
* Goods are actually received;
* Tax invoice is available;
* Goods are used for taxable sales.
Discrepancies can lead to scrutiny, but **delay alone** does not automatically disallow ITC unless receipt is not proved or compliance conditions are violated.
---
If you tell me your **state**, I can check any state-specific circular or notification if it exists.
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