Meaning of Input and Output Tax

Input Tax

Output Tax

It is tax paid on purchases

It is tax charged on sales

Input tax is available only on purchase from registered dealers

Output tax is available on all sales

Whether to registered dealers or

Unregistered dealer

Input of local purchases only available

(no input of CST)

Output tax can be on local sale (called output vat) or on central sales (called output cst or cst payable)



  1. Indirect Tax
  2. Vat

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 11 years. He also provides Accounts Tax GST Training in Delhi and Pune.