"All purchases of goods meant for re-sale or manufacture of taxable goods are eligible for input tax credit." Comment.

The statement is not correct since no Input Tax Credit is allowed in respect of the following purchases: Goods purchased from unregistered dealers Goods purchased from registered dealers who opt for composition scheme Goods purchased from other States or Countries Goods purchased to manufacture exempted goods Goods purchased for personal consumption Goods purchased and returned within the specified period Goods purchased or destroyed by fire or are stolen or lost Goods purchased are given away as free samples Goods purchased for which purchase invoice is not available with the claimant.