Difference in VAT and GST

A dealer under VAT collects tax on his sales, retains the tax paid on his purchase and pays the balance to the government. Value Added Tax is a consumption-based tax because it is borne ultimately by the final consumer.


Under GST, the tax is levied at every point of sale. In the case of inter-state sales, Integrated GST will be levied and in case of intrastate supplies, CGST and SGST will be charged.

But mrp is 100 vat is 5% now gst is 18% then seller can charge more than mrp from buyer

Madhu sharma, please confirm whether product is under which stage

In general circumstances you cannot sale more than gst.
Gst stands for goods and service tax .
vat means value added tax.
There are certain items which are excluded from the list of Gst ,like petroleum liquor.
However gst rate cannot increase

No, Dealer cannot charge more than MRP.

No one can charge above except unless the govt. issues a circular.

You have to understand the Taxes which have been subsumed in GST. Previously In VAT regime Rates of Goods are including Central Excise.
Now Central Excise has been subsumed in GST. GST rate may show 18% but as per previous GST calculation it is nearly 18.81%.

If you sold excess than MRP, also Anti profiteering provisions will invoke.

No , you cannot sell more than mrp.Like last year there was a circular that you cannot
Anti profiteering is governed by separate set of laws.
In some cases, excise duty are still there.

Originally posted by : Madhu Sharma
	I have confusion related to gst rate.A product on which VAT was 5 % and in gst 18% can we sale it more than mrp or any other provision for it plz clear my doubt

MRP  is governed by The Legal Metrology (Packaged Commodities) Rules, 2011. MRP is the maximum price at which a commodity in packaged form may be sold to the consumer inclusive of all taxes. Therefore GST is already included in MRP

 

Originally posted by : 99rajendra
	You have to understand the Taxes which have been subsumed in GST. Previously In VAT regime Rates of Goods are including Central Excise. Now Central Excise has been subsumed in GST. GST rate may show 18% but as per previous GST calculation it is nearly 18.81%.If you sold excess than MRP, also Anti profiteering provisions will invoke.

Anti profiteering provisions invoke only when supplier charges more even when :

• There is reduction in rate of tax on the supply of goods or services or 
• Benefit of input tax credit is now available under GST, then a registered person must pass on the benefit by reduction in prices