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Currently

Suppose a dealer Purchases goods from Manfacturer,he charges both Excise and Vat
But on Sales,he charges only Vat as he is not doing any Manufacturing
Hence,there is no Input of Excise for vat dealers

Q2

Purchase from Manufacturer

PARTICULARS AMOUNT
PURCHASE 40000
EXCISE 12.5% 5000
TOTAL 45000
VAT 5% 2250
GRAND TOTAL 47250

Sales Bill (Assuming Dealer wants to earn 10000 Profit)

PARTICULARS AMOUNT
SALES 55000
VAT 5% 2750
TOTAL 57750

-a-

In this case,Vat Payable=Output Vat-Input Vat=2750-2250=500
Hence,there is no Input of Excise for vat dealers

-ea-

In future,on both Purchases and Sales,
Central and State GST will be charged

SUPPOSE CENTRAL GST IS 12.5% AND STATE GST IS 5%

PARTICULARS AMOUNT
PURCHASES 40000
CENTRAL GST 12.5% 5000
STATE GST 5% 2000
GRAND TOTAL 47000

Sales Bill (Assuming Dealer wants to earn 10000 Profit)

PARTICULARS AMOUNT
SALES 50000
CENTRAL GST 12.5% 6250
STATE GST 5% 2500
GRAND TOTAL 58750

-a-

GST PAYABLE COMPUTATION

PPARTICULARS CENTRAL GST STATE GST TOTAL GST
OUTPUT GST 6250 2500 8750
LESS      
INPUT GST 5000 2000 7000
GST PAYABLE 1250 500 1750

-ea-

Tax Earlier Paid=500

Tax after GST=1250+500=1750

 

Hence,More tax payabke by Such Dealers compared to before

 

  1. GST - Goods and Services Tax, India
  2. GST Impact
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About the Author

CA Maninder Singh's photo - Expert in Practical Accounts, Taxation and Efiling
CA Maninder Singh
CA Maninder Singh is a Chartered Accountant for the past 7 years. He provides courses for Practical Accounts, Taxation and Efiling at teachoo.com .
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