Suppose a Factory Purchases Semi Finished Goods and Manufacturers and sells Finished Goods
In this case,currently on both purchase and sales,excise as well as Vat is applicable
Factory has to file Vat and Excise Returns as shown below
Q1
Purchase Semi Finished Goods
| Particulars | Amount |
| Purchase | 40000 |
| Excise 12.5% | 5000 |
| Total | 45000 |
| Vat 5% | 2250 |
| Total | 47250 |
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 | 5000 |
| Excise Duty Payable | 10000 |
What is Vat Payable?
View answer
| Particulars | Amount |
| Output Vat | 6750 |
| Less | |
| Input Vat | 5000 |
| Vat Payable | 1750 |
Note:-
After Implementation of GST, on both Purchase and Sales,Central and State GST will be applicable
Example
Purchase Semi Finished Goods
| Particulars | Amount |
| Purchase | 40000 |
| CGST 2.5% | 1000 |
| SGCT 2.5% | 1000 |
| Total | 42000 |
Sales Finished Goods
| Particulars | Amount |
| SALES | 120000 |
| CGST 2.5% | 3000 |
| SGCT 2.5% | 3000 |
| Total | 126000 |
What is GST Payable?
View answer
| PARTICULARS | CENTRAL GST | STATE GST | TOTAL GST |
| OUTPUT GST | 3000 | 3000 | 6000 |
| LESS | |||
| INPUT GST | 1000 | 1000 | 2000 |
| GST PAYABLE | 2000 | 2000 | 4000 |