Adjustment of input vat against cst sales

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This query is : Resolved

KAVIT AGARWAL (Querist)

30 October 2013 Dear sir,

My question is weather Input Vat Credit can be adjusted towards CST Sales. Lets say i have purchased raw material
for my manufacturing concern against which i have a input credit of 5 lahs. Now my sales are both in VAT and CST. Lets say my VAT Output is 3 lakhs and CST Sales includes 2 lakhs. Now as per my advisors i still will have to pay CST out put in differential amount. as per following system
Total VAT input : 500000.00
Total Vat Sales : 300000.00 ( 100% setoff availed )
Remaning VAT Input 200000.00
CST Allowed under vat adjustment : ???.

Please if entire CST Out put can be set off against my VAT input or what calculation would apply ??

Under Orissa Vat Rules

K Bala Kishan

K Bala Kishan (Expert)

07 November 2013 CST liability shall also be adjusted from excess VAT input tax credit claimed. This provision shall be available while filing of VAT/CST returns as the field itself shows to adjust the CST liability in case you are claiming any excess VAT ITC. In case the same is not shown in the online return filing, then there is no provision for adjustment of CST liability against excess vat input tax credit. Hope now you can check the provision in the online return.

However, in AP, we can adjust such CST liability against excess VAT ITC.

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