22. Input tax credit exceeding tax liability.-

(1) If the input tax credit of a registered dealer other than an exporter selling goods outside the territory of India determined under section 21 for a tax period exceeds the tax liability for that period, the excess credit shall be set off against any outstanding tax, penalty or interest under the Act or the Central Sales Tax Act,1956 .

(2) The excess input tax credit remaining after adjustment under sub- section (1) may be carried over as an input tax credit to the subsequent tax period or periods but not beyond the end of the second financial year.

(3) In case where input tax credit is carried forward, an annual credit statement may be forwarded to the dealer concerned and the claims reconciled accordingly.

(4) The refund of excess input tax credit shall be allowed only after the end of the second financial year.