(1) If on the appointed day a registered dealer has in stock goods, other than capital goods, on which sales tax has been paid under the earlier law, he shall make a declaration to the Appropriate Assessing Authority in the form to be notified by the Commissioner and submit the total value of stock of goods held on the appointed day which shall entitle him to claim input tax credit on the goods purchased on payment of tax under the earlier law.
(2) The conditions for claiming input tax credit on such stock shall be as under:-
(a) The dealer claiming input tax credit must be registered under the Act, on the appointed day.
(b) A claim for input tax credit must be made in the form to be notified by the Commissioner within thirty days from the appointed day, however, on an application from the dealer the Appropriate Assessing Authority may allow such claims beyond thirty days for good and sufficient reason but not later than sixty days from the appointed day.
(c ) The dealer should submit to the notified authority an inventory of such goods held by him on the day immediately preceding the appointed day along with his application as required under clause (b) above.
(d) Where documentary evidence of sales tax charged is available, the value on which the sales tax is calculated shall be used as the basis for claiming the input tax credit and incase such purchases are inclusive of tax that is second sale where tax amount is not separately shown, the value of such stock shall be reduced by ten percent and on such reduced stock net of tax shall be determined by applying the following formula:
where 'A' is value of stock exclusive of tax
'B' is value of stock including tax
'R" is rate of tax under the earlier law
The tax rate for the purpose of calculation of input tax credit being applied to that value shall be the rate of sales tax specified in the earlier law for the said goods or the rate applicable under the Act, whichever is lower. For the purpose of this sub-clause the goods purchased by the registered dealer during the last 12 months preceding to the appointed day shall be eligible for claiming the input tax credit;
(e) If the purchases are made locally availing concessional rate of tax under section 10A of the Goa Sales Tax Act, 1964, for the purpose of calculation of input tax credit of such goods in stock on the appointed day shall be allowed at such concessional rate.