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Currently on Purchase from Manufacturers,we can get Input of Excise in 2 years (1/2 in Year of Receipt and half in next year)
But no input of Vat Component is available

Example

Expenses

VODAFONE   Machine Purchased from Y Ltd
Internet Bill 4000 Machines 80000
Add   Excise 12.5% 10000
Service Tax @ 14% 560 Total 90000
Swachh Bharat Cess @ 0.5% 20 Vat 5% 4500
Krishi Kalyan Cess @ 0.5% 20    
Total 4600 Total 94500

Service Provided

Service to X Ltd  
Consultancy Service 100000
Add  
Service Tax @ 14% 14000
Swachh Bharat Cess @ 0.5% 500
Krishi Kalyan Cess @ 0.5% 500
Total 115000

Make Service Tax Computation

Particulars Service Tax Swachh Bharat Cess Krishi Kalyan Cess Total
Output Service Tax 14000 500 500 15000
         
Input Service Tax (Input Services) 560 0 20 580
Input of Excise (Capital Goods) 5000     5000
Total Input 5560 0 20 5580
         
Service Tax Payable 8440 500 480 9420

After implementation of GST,input of both Central and State GST can be taken
Full Input will be available in first year itself

VODAFONE   Purchase from Y Ltd  
INTERNET 4000 Machine 80000
CENTRAL GST 12.5% 500 CENTRAL GST 12.5% 10000
STATE GST 5% 200 STATE GST 5% 4000
Total 4700 Total 94000
Service to X Ltd  
Consultancy Service 100000
CENTRAL GST 12.5% 12500
STATE GST 5% 5000
Total 117500
PARTICULARS CENTRAL GST STATE GST TOTAL GST
OUTPUT GST 12500 5000 17500
LESS      
INPUT GST 10500 4200 14700
GST PAYABLE 2000 800 2800

Remarks
Whole Input of Machine in First Year is a Welcome Step
Input of Vat was not available earlier but now will be available In form of SGSTwhich 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 .
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