Excess vat refund

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Sharique Maqbool

Others

35 Points Posted on 18 March 2013

Dear Sir,

I have trading company whose head office is in Bangalore and we have another branch in Gujarat.

We purchase raw materials from Gujarat by paying 5% Gujarat Vat and make interstate sales to manufacturing companies using C form at 2% CST. I know that 2% CST can be adjusted in this case from 5% VAT which we paid while procuring goods but i would like to know if 3% (5% Vat - 2% CSt = 3%) excess input VAT which is left can be refunded or not. If yes, How much time does it take normally? Thank you.

Replies (2)

MJ Krishnamurthy

ACCT(Retd)

5757 Points Posted on 19 March 2013

Generally at the end of eaach year,if you can not adjust the excess amount into other liabilities.Use form 306 of gvat act. No time limit is fixed in the GVAT Act......mjk

Sharique Maqbool

Others

35 Points Posted on 27 March 2013

Thank you Mr.Krishnamurty.

I would like to know if the VAT paid on purchase is refundable in full and complete in case of stock transfer or interstate sale? Is complete 4%/5% refundable/adjustable or anything paid in excess of 4% is only refundable? I am asking this because of the below excerpt from white paper-

"Even for stock transfer/consignment sale of goods out of the State, input tax paid in excess of 4% will be eligible for tax credit."