8. Tax
credit not allowed.—
(1) Notwithstanding anything contained in
this Act, a registered person shall not be entitled to reclaim or deduct input
tax paid on --
(a) the goods used or to be used for any
purpose other than [1][***********]
for taxable supplies made or to be made by him;
(b) any other goods which the Federal
Government may, by a notification in the official Gazette, specify;
(c) the
goods under sub-section (5) of section 3:
(ca) the
goods in respect of which sales tax has not been deposited in the Government
treasury by the respective supplier;
(d)
fake invoices; and
(e) purchases made by such registered
person, in case he fails to furnish the information
required by the Board through a notification issued under sub-section (5) of section 26.
(2) If a registered person deals in
taxable and non-taxable supplies, he can reclaim only such proportion of the
input tax as is attributable to taxable supplies in such manner as may be
specified by the Board.
(3) No person other than a registered person
shall make any deduction or reclaim input tax in respect of taxable supplies
made or to be made by him.
(4) (***)
(5) Notwithstanding anything contained in any
other law for the time being in force or any decision of any Court, for
the purposes of this section, no input tax credit shall be allowed to the
persons who paid fixed tax under any provisions of this Act as it existed at
any time prior to the first day of December, 1998.
(6) Notwithstanding anything contained in any
other law for the time being in force or any provision of this Act, the Federal
Government may, by notification in the official Gazette, specify any goods or
class of goods which a registered person cannot supply to any person who is not
registered under this Act.
(7) (***)