In a major relief to city traders, Delhi Government approved the amendment to VAT (Value Added Tax) Act to allow the carry forward of input tax credit for traders. The decision has been taken by Delhi Cabinet on Friday. The Cabinet has also decided to call a two-day Assembly Session beginning from March 24 and 25 for tabling vote-on-account for the first three months of the next financial year even as the full Budget will be presented in the month of June.
Announcing the Cabinet decision, Sisodia said that the Cabinet approved the amendment to VAT Act to allow the carry forward of input tax credit for traders. The Government has decided that carry forward of input tax credit of VAT will be allowed to the next year to adjust the output tax liability in the next tax period. Previously, it was mandatory for traders to claim refund before March 31. The traders have been demanding to allow carry forward input tax credit for the last several years. This was a cumbersome process and traders faced the apprehension of lapse of any refund amount in case they failed to claim the reimbursement. “The latest amendment, on being passed by the State Assembly, will allow the
traders to carry forward their credit for the successive financial years,” Sisodia said. “This is the online furnishing of the detail of statutory forms available with the dealer and has been introduced recently. Earlier, this was in the form of R-10 then it was later amended to R-9. Many dealers had already furnished R-10 and were required to furnish R-9 again,” said officials.