24. Input tax  credit where identification of goods is not possible.

(1) Where a taxable person has used the goods purchased, partially for taxable sales, but is unable to maintain accounts as provided in rule 23, and the sales by him, includes sale of tax free goods and taxable goods or consignment or branch transfers, then it shall be presumed that the goods so purchased during the tax period, have been used in proportion of turnover of sales of tax free goods, taxable goods and  consignment or branch transfers of the tax period or return period and accordingly input tax credit shall be claimed in that proportion. Input tax credit shall be apportioned for tax-free and taxable sales as follows namely :

IT x T

GT +BT

Explanation  :  “IT”  is the total amount of input tax for the period less reverse tax:

“T”  is the total turnover of sales of taxable goods made in the tax period or return period including zero rated sales, inter-state sales and value of branch/consignment transfers but excluding the tax amount.  

“GT”  is the gross turnover of sales (including inter-state sales) during the tax period or return period but excluding the tax amount.  

“BT” is the total value of consignment or branch transfers of taxable goods in the course of inter-state trade or commerce made in the tax period/return period.  

(2) In respect of the goods, specified in sub-sections (2) and (3) of section 13 of the Act, input tax shall be considered only to the extent by which the amount of tax paid in the State exceeds four per cent and where a person makes branch transfers, the above amount of input tax credit shall be further reduced by a sum calculated in accordance with the following

     formula namely : -

 

IP x BT x 4

 

 

(GT+BT) x 100

 

Explanation  : “IP”  is the purchase price of the goods excluding the tax amount in respect of which ITC is considered above.

“GT”  is the gross turnover of sales (including inter-state sales) during the tax period or return period but excluding the tax amount.

“BT” is the total value of consignment or branch transfers of taxable goods in the course of inter-state trade or commerce made in the tax period or return period.