Vat input

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

12 September 2016 whether excess VAT input 4% or 5% ( after adjusting VAT output of 4% & 5%) can be adjusted against 12.5% (after adjusting VAT input 12.5%) VAT output.

Expert : Anonymous

Expert : Anonymous (Expert)

12 September 2016 Already answered

Aashok Kumar Sharma

Aashok Kumar Sharma (Expert)
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02 August 2025 Regarding your question on whether excess input VAT at 4% or 5% (after adjusting output VAT at those rates) can be adjusted against output VAT at 12.5% (after adjusting input VAT at 12.5%):

**Generally, VAT input credit is allowed to be adjusted only against output VAT of the same rate category.**

### Explanation:

* Input VAT paid on purchases at a particular rate (say 4% or 5%) can only be adjusted against output VAT liability arising on sales taxed at the **same rate**.
* Input VAT cannot be cross-adjusted against output VAT of a different rate slab (like 12.5%).
* Each VAT rate slab is treated independently for credit adjustment purposes.

### Therefore:

* Excess input VAT at 4% or 5% **cannot** be adjusted against output VAT at 12.5%.
* Excess input VAT at one rate can typically be carried forward or claimed as refund as per the relevant VAT rules of your state.

If you want, I can help you check specific provisions for your state, as some states might have slight variations.

Would you like me to look into your state's VAT rules for this?

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