plz refer para 2.4 of White Paper on State-Level VAT for further reference.
Para 2.4 If the tax credit exceeds the tax payable on sales in a
month, the excess credit will be carried over to the end of next
financial year. If there is any excess unadjusted input tax credit
at the end of second year, then the same will be eligible for refund.
Input tax credit on capital goods will also be available for
traders and manufacturers. Tax credit on capital goods may be8
adjusted over a maximum of 36 equal monthly instalments.
The States may at their option reduce this number of instalments.
There will be a negative list for capital goods (on the basis
of principles already decided by the Empowered Committee)
not eligible for input tax credit.
rgds