Input Tax Credit provisions in brief- Andhra Pradesh Assam

State	ANDHRA  PRADESH    {Sec.13,22,38 / Rule 16,20}	ASSAM  {Sec.11,14,15 / Rule 9,11,12}
Full VAT Input Tax Credits - Eligibility / admissibility & purposes specified	On ALL VAT-paid goods at point of purchase on receipt of Tax invoice during Tax period, if such goods are for use in business;                                 E.T. paid eligible for adjustment against output VAT.	On VAT-paid purchases in Tax period following after receipt of Tax invoice; for Sale/resale of taxable goods in/from Assam; for Capital goods for manufacture of taxable goods; Use in manufacture/packing of taxable goods for sale
Conditions / Restrictions	ITC can be adjusted against Output VAT or CST; Excess ITC for any Tax period may be claimed in next Tax Return, with adjustments if any until March on Form 'VAT-200-B'.	Input tax rebate can be adjusted against Output VAT;                                                       Excess ITC carried over to next Tax periods.                                                           ITC on Capital goods (other than second hand) available from commencement of commercial production - to be adjusted against Output tax over a period of 3 years.
Reduction in Set-offs / Reversal of Input Tx credit	Reduction of 4% of net Purchase price (i.e. set-off available in excess over 4%) in case of Branch Transfers outside A.P.                                                                         In case of works contract -> ITC limited to 75%.	Reduction of amount equivalent to CST that would have been leviable; in case of Branch Transfers outside Assam of goods purchased or of finished goods out of raw materials purchased (disposals otherwise than by way of sale).
Non-admissibility	No ITC allowed on Petrol, Motor spirits, Diesel Oils; on transfer of business; fuels for captive power generation/power plants; input used in Factory/Office  const., generators used for captive generation; works contracts under composition.	No set-off allowed on (i) Capital or other expenditure on land, civil structure or construction; (ii) Capital goods purchased for use in generation of energy/power including captive power (iii) Vehicles, Office equipments, furniture, electrical fixtures; (iv) Composition Tax is paid (v) goods lost/damaged and not eventually sold; (vi) goods lying unsold at time of closure