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Existing vat credit set off against gst

CA Kahnu charan Harichandan (Accounts Manager) (49 Points)

24 May 2017

Dear All,

(1) I want to know whether existing VAT credit can be set off against CGST under GST law?

Thanks,

Hari

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20 Replies

CA NEHA RAMPURIA (Taxation Consultant) (1823 Points)
Replied 24 May 2017

VAT Credit carried forward by you in your return will be eligible as input tax credit and would be setoff against SGST under GST LAW. and not against CGST

CA Kahnu charan Harichandan (Accounts Manager) (49 Points)
Replied 24 May 2017

Hi Neha,

Can U Specify the section or provision under Gst ?.Actually I am very confused on this point.

Thanks

Hari

rohit (none) (186 Points)
Replied 24 May 2017

You will find relevant provision in your State GST Act.

Also, you must have filed all required VAT returns within period of 6 months before GST applicability date.

rohit (none) (186 Points)
Replied 24 May 2017

https://www.cbec.gov.in/resources//htdocs-cbec/gst/gst-transition-rules.pdf

Praveen Kachhawa (Financial Accountant) (225 Points)
Replied 24 May 2017

See Section 16 And 16(a)

CA Kahnu charan Harichandan (Accounts Manager) (49 Points)
Replied 25 May 2017

Hi,

I have gone through all provisions of GST regarding ITC but nowhere it is mentioned about taking state administered tax credit like VAT,entry tax etc into SGST Credit and Set off against SGST liability and similarly,Central Govt adminstered Tax Credit like Excise duty,Service TAX ans CST etc to CGST credit and Set off Against CGST liability.

Please Clarify me on this point.

thanks,

hari

CA NEHA RAMPURIA (Taxation Consultant) (1823 Points)
Replied 25 May 2017

Sir , excise duty and service tax are levied by central govt. VAT , eNtry tax is levied by state. So now getting into gst there is central tax and state tax. So the credit of excise and service tax wud b standing as cgst and VAT credit would be standing as SGST. Also if you go through the transition provision you'll come to know abt it

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rohit (none) (186 Points)
Replied 25 May 2017

Do take care of transition compliance requirements:

all C/F/H/I forms must be available.

returns in last 6 months before appointed date must be filed.

Input credit restricted to 40% in case duty payment document (Like Excise Invoice) not available.

CA Kahnu charan Harichandan (Accounts Manager) (49 Points)
Replied 25 May 2017

Thanks so much to Neha,Rohit and Praveen.

CA Kahnu charan Harichandan (Accounts Manager) (49 Points)
Replied 25 May 2017

Thanks lot to all of u

See Section 16 And 16(a)

Madan Lal (2 Points)
Replied 28 May 2017

under which section and act provision for submission all form c f h etc, other wise ITC hold as much as forms pending?

AVINASH JAIN (2 Points)
Replied 30 May 2017

retail or having tot license under vat have first stage tax paid &taxable invoices will get any credit in sgst

Mayank Agarwal (11 Points)
Replied 01 June 2017

Dear all

can you please let me know about one point that if I have a stock purchased @ 14.5% and gst will be applicable @ 28% then who will bear the difference tax of 13.5% , whether I will be liable to pay the tax from my profit margin ?. Because if I charge gst on cost price plus profit then we will get the sales price greater than MRP of the product.
Kindly clear me this point.

Thanking you
Mayank Agarwal

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