In the current tax regime, various conditions are applicable for availing input tax credit. A brief overview is given below:
|Type of Input Tax Credit||Conditions for availing Input Tax Credit (ITC)|
|VAT||As a VAT dealer, you can avail credit of the VAT paid on goods purchased in the course of business, for re-sale or for manufacture of goods, subject to conditions. Only purchases from registered dealers within the state are eligible for ITC|
|CENVAT/Service Tax||As a manufacturer, you can avail CENVAT credit on all inputs used directly or indirectly in relation to the manufacture of final products. You can also avail ITC on the service tax paid on any input service.
If you are a service provider providing taxable service, you can avail ITC on the service tax paid on input services used for provision of the taxable services.