1 No Tax on Tax in Case of GST. 

Currently Excise is charged on Amount

Vat/CST is charged on Amount+Excise.

In future,both Central and State GST will be on Amount

 2 Input of Central Purchases will be Available

Currently on Central Purchases,CST is charged for which no input is available
In future,Input will be available on Central Purchases called IGST Credit.


3 Uniform Tax Rates in Different States

Currently ,Rates of Vat are different form state to state
Also in some states,surcharge is levied on this Vat
In future,Rates will be same for all.Uniform Rates


4 Full input on Capital Goods

Currently on Capital Goods,50% Cenvat is available in current year and 50% in next year
Also Input of Vat on Capital Goods is different from State to State
(In Delhi,it is available in 3 years while in Harayana,not available at all)
In GST,input will be available in first year


5 Both CGST and SGST on Goods and Service

Currently Vat is Charged on Sale of Goods which is under State Government
However,Service tax is applicable in case of sale of services which is under Central Govt
After introduction of GST,both CGST AND SGST will be applicable in case of both goods and services
hence,a dealer as well as service provider has to pay both CGST AND SGST and file both challan and returns

6 Electronic Duty Credit Register

Currently in Service Tax and Excise,Sales of One Party are not matched with Purchases of Other Party

This is because  Party vise purchase sales are not mentioned in Service tax and Excise Return
In future,these party vise details are to be given in Returns


7 No C Form/F Form etc in Case of Central purchases

These forms will be abolished after implementation of GST as Input of CST Purchases will be available

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CA Maninder Singh

CA Maninder Singh is a Chartered Accountant for the past 13 years. He also provides Accounts Tax GST Training in Delhi, Kerala and online.