All Deputy Commissioner (Adm)/

All Assessing Authorities,

Commercial Taxes Department.

Sub.: Regarding ITC verification.

Vide notifications numbers F.16(100)/TAX/CCT/14-15/702. 709.716 and 723 dated 14.10.2019, the ITC verification process as laid down by notifications dated 20.06.2017 (as amended from time to time) was extended to cover demands pertaining to assessment year up to 2017-18 and was also further simplified in and with the Hon'ble Chief Minister's Budgetary Announcement Thereafter based on the representations received from trade and industry as well as the discussions held with the departmental officials, the procedure has been further simplified vide notifications number 1010, 1017, 1024 and 1031 dated 27.12.2019.

In this regard, all assessing authorities are directed to ensure the following:-

1. The procedure for verification shall also apply to cases of ITC mismatch where no demand has been created.

2. Submission of hardcopy of acknowledgment and invoices shall not be required in any case other than in applications ITCV-C and D involving invoices with tax amount greater than rupees ten thousand. In all other cases, the application shall be auto approved and or approved at the level of the tax assistant of the Assessing Authority of the purchaser.

3. Verification of the facts of the application and the conditions on the basis of which the claim has to be allowed may be made by the respective Assessing Authorities from the material available on their records and if no record is available, then from the Demand and Collection Registers.

4. The claim of lTC shall not be denied to the purchasing dealer in case any demand pertaining to non-submission of declaration forms is outstanding against the selling dealer.

5. The disposal of applications pertaining to ITC verification shall be done by the respective Assessing Authorities within one week of receipt of application or task in their login in cases of ITCV-A.B and C and within one week of receipt of response from the selling dealer in case of ITCV-D.

6. It should be noted that the demand pertaining to ITC shall not be enforced for want of verification of deposit of the corresponding tax till such adjustment is allowed or the claim for such input tax credit is rejected by an order in writing, as the case may be, as prescribed in Rule 45A of the Rajasthan Value Added Tax Rules, 2006. In case, the said claim is rejected, then recovery proceedings shall be initiated accordingly.

All Dy. Commissioners (Adm.) are directed to monitor and ensure strict compliance of aforesaid directions in their respective zones.

(Dr. Preetam B. Yashwant)

Commissioner,

Commercial Taxes,

Rajasthan, Jaipur