C.No.l(3)STR/2000, Dated 10th November, 2000.

I am directed to refer to your letter No.CLEBILL/ESM dated 27.10.2000 on the subject cited above and to state that section 7 of the Sales Tax Act, 1990 entitles a registered person to deduct input tax paid during the tax period for the purpose of taxable supplies made, or to be made, by him from the output tax that is due from him in respect of that tax period. Therefore, it is clear that the adjustment on account of tax paid against an electricity bill is to be made in that tax period when the bill (in the name of the registered consumer) was…