Currently on Capital Goods used in Production,Input of Excise is available in 2 years (1/2 in current year and half in next year)
Also Input of Vat is available in some states (like in Delhi in 3 years)
Q1
Purchase Raw Material Machines Used In Production
| Particulars | Amount | Particulars | Amount |
| Machines | 40000 | Machines | 64000 |
| Excise 12.5% | 5000 | Excise 12.5% | 8000 |
| Total | 45000 | Total | 72000 |
| Vat 5% | 2250 | Vat 5% | 3600 |
| Total | 47250 | Total | 75600 |
Sales Finished Goods
| Particulars | Amount |
| Sales | 120000 |
| Excise | 15000 |
| Total | 135000 |
| Vat 5% | 6750 |
| Total | 141750 |
What is Excise Duty Payable?
View Answer| Particulars | Amount |
| Output Excise | 15000 |
| Less | |
| Input Cenvat (on Inputs) | 5000 |
| Input Cenvat (on Input Services) | 4000 |
| Total Input Cenvat | 9000 |
| Excise Duty Payable | 6000 |
What is Vat Payable?
| Particulars | Amount |
| Output Vat | 6750 |
| Less | |
| Input Vat on Purchases | 2250 |
| Input Vat on Capital Goods 1/3 | 1200 |
| Total Input Vat | 3450 |
| VAT Payable | 3300 |
Note:-
However,implementation of GST,
Even on Capital Goods,full Input will be available in Current Year
EXAMPLE
Purchase Semi Finished Goods Machines Used In Production
| Particulars | Amount | Particulars | Amount |
| Purchase | 40000 | Machines | 64000 |
| CGST 2.5% | 1000 | CGST 2.5% | 1600 |
| SGCT 2.5% | 1000 | SGCT 2.5% | 1600 |
| Total | 42000 | Total | 67200 |
Sales Finished Goods
| Particulars | Amount |
| SALES | 120000 |
| CGST 2.5% | 3000 |
| SGCT 2.5% | 3000 |
| Total | 126000 |
| PARTICULARS | CENTRAL GST | STATE GST | TOTAL GST |
| OUTPUT GST | 3000 | 3000 | 6000 |
| LESS | |||
| INPUT GST | 2600 | 2600 | 5200 |
| GST PAYABLE | 400 | 400 | 800 |
