Input Tax is Adjustable Even When Paid on Goods Used in Supply to Non-registered Persons

Q: Is Input Tax ajustable if it is paid on purchase of goods that are used in supply to non-registered person?
Ans: Yes, Input Tax will be adjustable in this case for the reason that the supply of goods to a non-registered person is also a taxable supply and Output Tax is required to be charged/paid on the said supplies. Input Tax is not allowed adjustment when it is paid on goods used or to be used in supply other than taxable supply i.e. exempt supply.