(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 for the manufacture or production
of taxable goods or 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:

(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) (***)