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Currently on Purchase from Manufacturers,we can get Input of Excise
But no input of Vat Component is available

Example

Expenses

VODAFONE   Purchase from Y Ltd
Internet Bill 4000 Purchase 40000
Add   Excise 12.5% 5000
Service Tax @ 14% 560 Total 45000
Swachh Bharat Cess @ 0.5% 20 Vat 5% 2250
Krishi Kalyan Cess @ 0.5% 20    
Total 4600 Total 47250

Service Provided

Service to X Ltd  
Consultancy Service 60000
Add  
Service Tax @ 14% 8400
Swachh Bharat Cess @ 0.5% 300
Krishi Kalyan Cess @ 0.5% 300
Total 69000

Make Service Tax Computation

Particulars Service Tax Swachh Bharat Cess Krishi Kalyan Cess Total
Output Service Tax 8400 300 300 9000
         
Input Service Tax (Input Services) 560 0 20 580
Input of Excise (Inputs) 5000     5000
Total Input 5560 0 20 5580
         
Service Tax Payable 2840 300 280 3420

After implementation of GST,input of both Central and State GST can be taken

VODAFONE Purchase from Y Ltd
INTERNET 4000 Purchase 40000
CENTRAL GST 12.5% 500 CENTRAL GST 12.5% 5000
STATE GST 5% 200 STATE GST 5% 2000
Total 4700 Total 47000
Service to X Ltd  
Consultancy Service 60000
CENTRAL GST 12.5% 7500
STATE GST 5% 3000
Total 70500
PARTICULARS CENTRAL GST STATE GST TOTAL GST
OUTPUT GST 7500 3000 10500
LESS      
INPUT GST 5500 2200 7700
GST PAYABLE 2000 800 2800

Input of Vat was not available earlier but now will be available In form of SGST which is a welcome step

 

 

  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 .
  • anupsharma23's image

    What is the rate of gst for vat dealer, excise duty and service provider ? What will be purchase and sales bill of vat dealer, excise duty and service provider ?

     

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