AP VAT - WHAT ARE THE GOODS ON WHICH I CANNOT CLAIM AN INPUT TAX CREDIT?

You cannot claim an input tax credit for the following goods that are defined in list as per Rule 20 (2) of APVAT Act.

a All automobiles including commercial vehicles / two wheelers / three wheelers required to be registered under the Motor Vehicles Act 1988 and including tyres and tubes, spare parts and accessories for the repair and maintenance thereof; unless you are in the business of dealing in these goods. b Fuels used for automobiles or used for captive power generation or used in power plants. c Air conditioning units other than those used in plant and laboratory, restaurants or eating establishments, unless you are in the business of dealing in these goods. d Any goods purchased and used for personal consumption. e Any goods purchased and provided free of charge as gifts otherwise than by way of business practice. f Any goods purchased and accounted for in the business but utilized for the purpose of providing facilities to employees including any residential accommodation. g Crude oil used for conversion / refining into petroleum products. h Natural Gas and coal used for power generation. i Any inputs used in construction or maintenance of any buildings including factory or office buildings, unless you are in the business of executing works contracts. j Earth moving equipment such as bulldozers, JCB’s and poclain etc., and spares and accessories thereof unless you are in the business of dealing in these goods. k Generators and accessories thereof used for captive power generation unless you are in the business of dealing in these goods. l Goods listed in Schedule VI to the Act.