Input tax credit exceeding tax liability:

(1) If the input tax credit of a registered dealer other than an exporter selling goods outside the territory of India determined under Section 17 of this Act for a period exceeds the tax liability for that period, the

excess credit shall be set off against any outstanding tax, penalty or interest under this act. (2) The excess input tax credit after adjustment under sub-section (1) may be carried over as an input tax credit to the subsequent period or periods. Provided that the input tax credit shall not be carried forward for a period of more than two years after close of the concerned financial year. Unadjusted input tax credit beyond two years shall have to be refunded. (3) In case where input tax credit is carried forward, a quarterly credit statement may be forwarded to the dealer concerned and the claims reconciled accordingly. (4) Declaration of stock of goods held on the appointed day-In case of dealer registered under this Act with effect from the appointed day all tax paid goods purchased on or after April Pt 2004 and remaining still in the stock as on April 1st, 2005 will be eligible to receive input tax credit, subject to submission of required particulars and documents on inventory. VAT will be levied on the goods when sold on or after april I st, 2005 and input tax credit will be given for the sales tax already paid under the earlier laws in the previous years. Such tax credit will be available over a period of six months after an interval of three months needed for verification as may be prescribed. 19. Adjustment of input tax credit: Where any purchaser, being a registered dealer, has been issued with a credit note or debit note in terms of sub-section (1) of section 23 or if he returns or rejects goods purchased, as a consequence of which, thee input tax credit availed by him in any period in respect of which the purchase of goods relates, becomes less or excess, he shall compensate such less credit or excess credit by adjusting the amount of tax credit allowed to him in respect of the tax period in which the credit note or debit note has been issued or goods are returned subject to conditions as may be prescribed. 20. Burden of proof: In respect of any sale or purchase affected by a dealer the burden of proving that he is not liable to pay tax under Section 9, Section 10 or that he is eligible to input tax credit under Section 17 shall be on him. 21. Levy of presumption tax on registered retailers: All registered retailers whose gross turnover of sales does not exceed rupees ten lakhs, subject to such conditions and restrictions as may be prescribed shall, pay in lieu of the tax as specified under Sections 9 or Section 10, a tax at such percentage of the entire taxable turnover of such sales and purchase as the

government may, by order, notify, subject to the condition that no input tax credit shall be available to such dealers: Provided that payment of tax under this Section shall not apply to a registered retail dealers who imports goods from-outside the state for the purpose of carrying out his business. Provided further that a registered retail dealer may, by exercising option in the prescribed manner, elect to pay tax as specified under Section 9 or Section 10 of this Act in lieu of the provisions of this section.