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 |
