Conditions for entitlement of Input Tax Credit modified in WB VAT

As per the new pro­vi­sion of sub-sec­tion (4A) of sec­tion 22, ITC or ITR shall be avail­able to the pur­chas­ing deal­er if tax is actu­al­ly paid on such trans­ac­tion by the sell­ing deal­er by way of deposit in Gov­ern­ment account or by includ­ing such tax in out­put tax shown in the return sub­mit­ted by the sell­ing deal­er. Fur­ther, ITC/ITR shall not exceed the amount of tax so paid by the sell­ing deal­er in respect of such transaction.

More­over, the ITC availed in excess of eli­gi­ble amount as per such pro­vi­sion of sub-sec­tion (4A) shall have to be reversed.