37.

No input tax credit shall be allowed on purchases made in the following circumstances :

(i) All purchases made from dealers who are either a casual traders under the Act or registered retailers paying presumptive tax under section 21 of the Act;

(ii) Interstate purchases i.e. purchases made from outside the State of Nagaland;

(iii) Purchases not made on Tax Invoice prescribed under section 55 of the Act.

(iv) Tax charged to such dealer must have been paid by the selling dealer to the state. In case selling dealer defaults in depositing the tax collected on the goods sold to any dealer, the purchasing dealer in this case shall not be eligible to avail the said input tax credit.