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 |
In this case,Vat Payable=Output Vat-Input Vat=2750-2250=500
Hence,there is no Input of Excise for vat dealers
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 |
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 |
Tax Earlier Paid=500
Tax after GST=1250+500=1750
Hence,More tax payabke by Such Dealers compared to before
