Save Rs 588 on a 2-Year Ad-Free CAclubindia Pro Membership. Subscribe Now!

Difference in gst and vat for businessman

Save Share

This query is : Resolved

Prakash Dayani (Querist)
Follow

01 July 2017 I want to know how different is GST different for a businessman in terms if tax credit.

I vat regime I used to pay the govt. Tax collected - tax paid

In gst I will be getting credit for tax paid... So its the same thing.... Isn't it.? That's the first question.

2nd Q. If a chain say vegetable seller sells to restaurant (unregistered) ... And then the restaurant sells food to consumer without the bill. So seller happy, restaurant happy, customer happy.. No one is paying tax.. Then how valid is the claim that says it will bring such trade into organized trade as people will start demanding for bill to claim credit...

Amol S Joglekar

Amol S Joglekar (Expert)
Follow

01 July 2017 01. yes, the scheme of ITC is quite similar to set off.
02. For small traders, manufacturers etc there is no GST. But for the ones having turnover above 20 lakh, GST is applicable.

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now