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Is there any restriction for availing input tax credit depending on the manner of disposal of goods, say, as free gifts or on stock transfer?

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Is there any restriction for availing input tax credit depending on the manner of disposal of goods, say, as free gifts or on stock transfer?

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Yes. Input tax credit will be available on output tax payable on sales within the State and on inter-State sale. Restricted input tax credit is available on stock transfer/consignment despatches outside the State.

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