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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
