(1) A registered person shall be entitled to deduct from the tax collected while supplying any goods or services the tax paid on importation or receipt of taxable goods or services in the month or earlier in the following cases:-
(a) If the goods or services for which tax deduction is claimed are directly related to taxable business.
(b) In case of internal purchase, if the tax invoice as per rule 17 has been received.
(c) If it is imported, if there are documents related to the import proving that the tax has been paid at the time of importation. Explanation: For the purpose of this clause, "documents relating to importation" means declaration, cash receipt, bill of goods and in case of supply of services which are not imported through customs, the bill of services and other related documents prescribed by the department from time to time.
(2) Deduction of tax according to this rule can be done only once. While deducting the tax in this way, there should be invoices or documents related to import up to one year before the date of claim.
(3) When a registered person submits a tax return for each tax period, he must file the remaining amount with the tax return along with the tax return from the tax collected during the sale of the goods after deducting the tax paid during the purchase or import of the goods.
(4) If the amount of tax paid by the registered person during purchase or import is more than the amount collected by him during sale, he will be entitled to deduct the excess amount in the next tax period. In this way, if the amount to be deducted in the next tax period remains for four consecutive months, he will have to submit an application to the tax officer in the format as per schedule-10 to get a lump sum refund. After receiving such an application, the tax officer shall return the remaining tax as per Rule 45.
(5) If a registered person exports more than forty percent of the total monthly sales sold in a month, he should submit an application before the tax officer, attaching the necessary documents related to the export in the format as per Schedule-10, to get a refund of the excess tax deducted for that month. Rule 45 b on receipt of such application by the taxing officerMojim will have to refund the remaining tax. Thus, while deciding to refund the remaining tax, the tax officer should pay attention to the following points:-
(a) Tax has not been paid on purchase or import.
(b) The tax statement which should be submitted earlier has not been submitted and if it has been submitted, the tax refund claim will not be confirmed from such tax statement. Explanation: For the purpose of this sub-rule, "documents relating to export" shall mean export certificate, goods received certificate, receipt and import certificate in case of barter and export certificate, goods received certificate, payment certificate and receipt in case of export.