In a latest Notification dtd.29-Jun-2010, the Gujarat Government has notified –
1. Input Tax Credit will be reduced by 2% on taxable turnover of Purchases when –
a. the goods are sold / resold in the course of inter-state trade and commerce;
b. the goods are used as input including raw material in the manufacture of goods which are sold in the course of inter-state trade and commerce.
This disallowance of ITC shall not be applicable to precious metals, jewellery, spices, etc. mentioned in Entry 13 of Sch-II; and
2. No Input Tax Credit will be available on naphtha, natural & associated gas & LSHS used in fertilizer industries for manufacturing of fertilizers of any kind.
These amendments are effective from 1-Jul-2010.