Vat input
This query is : Resolved
09 April 2016
we are contractors and having work contracts in Karnataka state.since there is no dealer for Eicher tippers in karnataka we purchased the tippers in Madhya pradesh state by paying VAT and brought those tippers tokarnataka forour works.now my querrey is weather i can claim VAT in put, in karnataka VAT return filing
Murtaza I Bhagat
(Expert)
10 April 2016
ITC for paying VAT or CST of other state is not allowed in every state vat dept.
02 August 2025
Sure! Let me clarify the issue of **Input VAT Credit (ITC) when you purchase goods from another state**:
---
### Your situation:
* You are a contractor in **Karnataka**.
* You bought **Eicher tippers** (vehicles) from **Madhya Pradesh** and paid VAT there.
* You brought these tippers to Karnataka for your work.
* Now you want to know if you can claim VAT input credit on the VAT paid in Madhya Pradesh while filing VAT returns in Karnataka.
---
### Key points:
1. **VAT is a state-level tax** — Each state has its own VAT laws and input credit rules.
2. **Input VAT credit on purchases from other states is generally NOT allowed** for VAT, because VAT is charged by the selling state and input credit is only available within the state where you are registered.
3. In your case:
* You paid VAT in Madhya Pradesh.
* You are registered and doing business in Karnataka.
* You **cannot claim input VAT credit in Karnataka on the VAT paid in Madhya Pradesh.**
4. When goods are purchased from another state, the tax applicable is generally **CST (Central Sales Tax)**, **not VAT**, if the seller is registered in that other state.
5. You **should have been charged CST (usually 2%) instead of VAT** by the seller from Madhya Pradesh because the sale is interstate. If you were wrongly charged VAT by the Madhya Pradesh dealer, you may have to check with them.
6. Since the goods are brought to Karnataka, you will pay VAT on the sale in Karnataka when you sell the goods or services locally, but input VAT credit for VAT paid outside Karnataka is not allowed.
---
### Summary:
* **Input VAT credit is allowed only on VAT paid within your registered state (Karnataka).**
* VAT paid in other states (like Madhya Pradesh) is not eligible for input credit in Karnataka VAT return.
* You should ensure interstate purchases are charged CST, not VAT.
---
If you want, I can help you with:
* How to handle interstate purchases and CST properly.
* Correct VAT filing procedures in Karnataka.
* Clarifying the difference between VAT and CST for your work contracts.
Would you like that?
---
### Your situation:
* You are a contractor in **Karnataka**.
* You bought **Eicher tippers** (vehicles) from **Madhya Pradesh** and paid VAT there.
* You brought these tippers to Karnataka for your work.
* Now you want to know if you can claim VAT input credit on the VAT paid in Madhya Pradesh while filing VAT returns in Karnataka.
---
### Key points:
1. **VAT is a state-level tax** — Each state has its own VAT laws and input credit rules.
2. **Input VAT credit on purchases from other states is generally NOT allowed** for VAT, because VAT is charged by the selling state and input credit is only available within the state where you are registered.
3. In your case:
* You paid VAT in Madhya Pradesh.
* You are registered and doing business in Karnataka.
* You **cannot claim input VAT credit in Karnataka on the VAT paid in Madhya Pradesh.**
4. When goods are purchased from another state, the tax applicable is generally **CST (Central Sales Tax)**, **not VAT**, if the seller is registered in that other state.
5. You **should have been charged CST (usually 2%) instead of VAT** by the seller from Madhya Pradesh because the sale is interstate. If you were wrongly charged VAT by the Madhya Pradesh dealer, you may have to check with them.
6. Since the goods are brought to Karnataka, you will pay VAT on the sale in Karnataka when you sell the goods or services locally, but input VAT credit for VAT paid outside Karnataka is not allowed.
---
### Summary:
* **Input VAT credit is allowed only on VAT paid within your registered state (Karnataka).**
* VAT paid in other states (like Madhya Pradesh) is not eligible for input credit in Karnataka VAT return.
* You should ensure interstate purchases are charged CST, not VAT.
---
If you want, I can help you with:
* How to handle interstate purchases and CST properly.
* Correct VAT filing procedures in Karnataka.
* Clarifying the difference between VAT and CST for your work contracts.
Would you like that?
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