Currently Service Providers do not get Input of Vat
as Service tax is under Central Government and Vat under State Government

Example

Expenses

VODAFONE   Purchase from Y Ltd  
Internet Bill 2000 Office Stationary 800
Add      
Service Tax @ 14% 280 Add  
Swachh Bharat Cess @ 0.5% 10 Vat 5% 40
Krishi Kalyan Cess @ 0.5% 10    
Total 2300 Total 840

Service Provided

Service to X Ltd  
Consultancy Service 20000
Add  
Service Tax @ 14% 2800
Swachh Bharat Cess @ 0.5% 100
Krishi Kalyan Cess @ 0.5% 100
Total 23000

Make Service Tax Computation

Partoculars Service Tax Swachh Bharat Cess Krishi Kalyan Cess Total
Output Service Tax 2800 100 100 3000
Input Service Tax 280 0 10 290
Service Tax Payable 2520 100 90 2710

After implementation of GST,input on these can be taken

VODAFONE Purchase from Y Ltd  
INTERNET 2000 Office Stationary 800
CENTRAL GST 12.5% 250 CENTRAL GST 12.5% 100
STATE GST 5% 100 STATE GST 5% 40
Total 2350 Total 940
       
Service to X Ltd  
Consultancy Service 20000
CENTRAL GST 12.5% 2500
STATE GST 5% 1000
Total 23500
PARTICULARS CENTRAL GST STATE GST TOTAL GST
OUTPUT GST 2500 1000 3500
LESS      
INPUT GST 350 140 490
GST PAYABLE 2150 860 3010

 

  1. GST - Goods and Services Tax, India
  2. GST Impact
Ask Download

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 8 years. He provides courses for Practical Accounts, Taxation and Efiling at teachoo.com .