Sale of Gooods and Service
This query is : Resolved
22 April 2009
How VAT is Applicable to both the sale of goods and Services ?At what rate it is charged?
22 April 2009
Please read full details of GST in a article published by Mr Sudhir Halakandi
22 July 2025
Sure! Here's a quick clarification on VAT and services:
---
### VAT on Goods vs. Services
* **VAT (Value Added Tax)** is **applicable only on sale of goods**.
* **Services are not subject to VAT**; they are taxed under **Service Tax** (before GST came into effect in 2017).
---
### Before GST (pre-July 2017):
| Type of Supply | Tax Applicable | Tax Rate |
| -------------- | ---------------------- | ------------------------------------------- |
| Goods | VAT (state-wise rates) | Typically 5-15% (varies by state and goods) |
| Services | Service Tax (central) | Around 14% (varied over time) |
---
### After GST (post-July 2017):
* VAT and Service Tax were replaced by **GST (Goods and Services Tax)**.
* GST is a **unified tax** on **both goods and services**.
* GST rates are mostly **5%, 12%, 18%, or 28%**, depending on the product/service.
---
If you want, I can share detailed GST rate schedules or more about pre-GST VAT/Service Tax rules!
---
### VAT on Goods vs. Services
* **VAT (Value Added Tax)** is **applicable only on sale of goods**.
* **Services are not subject to VAT**; they are taxed under **Service Tax** (before GST came into effect in 2017).
---
### Before GST (pre-July 2017):
| Type of Supply | Tax Applicable | Tax Rate |
| -------------- | ---------------------- | ------------------------------------------- |
| Goods | VAT (state-wise rates) | Typically 5-15% (varies by state and goods) |
| Services | Service Tax (central) | Around 14% (varied over time) |
---
### After GST (post-July 2017):
* VAT and Service Tax were replaced by **GST (Goods and Services Tax)**.
* GST is a **unified tax** on **both goods and services**.
* GST rates are mostly **5%, 12%, 18%, or 28%**, depending on the product/service.
---
If you want, I can share detailed GST rate schedules or more about pre-GST VAT/Service Tax rules!
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Audit of F and O T/O
- Unable to generate and save json file for updated return
- GST payable under RCM
- Applicablity on tds
- How to update Transaction data in broker samco account holding after transfer shares KARVY
- For sale of shares of a private limited company, what is process cost and time for demat of shares
- WRONGLY UPLOADED 10IF FOR COOPERATIVE SOCIETY
- Which SAC code should be ed?
- Tax audit & Switching from Presumptive taxation
- Regarding TDS not deducted on rent
Trending Online Classes
-
LIVE Course on GSTR-9 & GSTR-9C (Technical | Practical | Concept - Based)
Sachin Jain03 November 2025
CAclubindia
