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The Official Website of the Commercial Taxes Department, Govt. Of Kerala
Answer to FAQ
FAQ: What are the circumstances in which refund of input tax credit is permissible?

ANs: Refund of input tax is allowed where the goods purchased are- a. sold interstate or exported. b. used for packing materials of goods sold interstate or exported c. used in the manufacture of goods and the manufactured goods are sold interstate or exported. d. used as capital goods in relation to goods sold interstate or exported. e. Sent as stock transfer to outside the state or the goods manufactured or packed using the goods purchased are sent as stock transfer to outside the state (in this case tax paid in excess of 4 % alone is eligible for refund.) No refund will be available if the goods sold interstate or sent as stock transfer are not taxable. But in the case of export refund of input tax will be available even if the goods exported are not taxable.(item included in the first schedule)

Kerala Commercial Tax

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