21 September 2010
Our company is manufacturing TMT bars. For manufactring of Sponge Iron, we give hit to Iron Ore by Coal. So coal is used as fuel. Can we take VAT(gujarat) credit on coal? Please give judgement on that also or any other reference.
21 September 2010
Under Gujarat VAT Act, as per section 11(3)(b)(iii) you need to reverse input tax credit of four percent on the value of purchases of goods used as fuel for manufacturing of goods.
Accordingly, you will need to reduce 4% VAT credit on purchase of coal used as fuel
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