What is CENVAT Credit?

Full form of CENVAT is Central Value Added Tax

Let's take an example to understand what is the meaning of CENVAT Credit

We know that

Output – Input=Excise Duty Payable

Similarly,

Output – Input=Service Tax Payable

This Input is called Cenvat Credit

What taxes are covered in CENVAT?

Cenvat is the input of excise ,service tax and some other duties.

Both service tax and excise have same department, hence Service Provider gets input of excise and vice versa

Different Types of CENVAT Credit

Cenvat Credit is available on

• Inputs
• Capital Goods
• Input Services