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 the goods, other than exempted goods, for sale; or

(e) being used as raw material ,"except those as may be notified by the State Government," 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" 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,"

"(2) The claim of input tax credit shall be allowed on the tax deposited on the basis of original VAT invoice within three months from the date of issuance of such invoice. However, claim of input tax credit of the additional tax deposited may be allowed on the basis of VAT invoice which has been issued subsequently in compliance with the decision of any competent court or authority, showing the tax at higher rate. If the first original VAT invoice is lost, input tax credit may be allowed on the basis of a duplicate copy thereof, subject to such conditions as may be prescribed."

(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;"

Explanation.- For the purpose of this clause," first point in the series of sales " means the first sale made by a registered in 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 , 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."

(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.