(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 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; and

(c)    on the goods under sub-sections (1A) and 5 of section 3.

(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)    No person engaged in taxable activity specified in section 3A shall make any deduction or reclaim input tax, nor shall this tax be creditable as input tax for the taxable activity of any other registered person;

(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.