How to set off vat credit for service tax payment in gst?

No, it cannot be done. Service Tax liability shall be paid in cash before GST implementation. Extra VAT credit shall be taken in GST as SGST credit. Later it can be used to pay SGST or IGST as needed.

Once the GST is in force -The service tax  liability would be CGST liability & VAT input Credit would be SGST Credit .

Credit Setoff Rules as per DRAFT is as under-

IGST payments can be set off against –Credit of IGST, CGST, SGST 

CGST payments can be set off against –Credit of IGST and CGST 

SGST payments can be set off against – Credit of IGST and SGST .

Conclusion : Setoff would not be possible.

Originally posted by : Rajesh Kumar
	No, it cannot be done. Service Tax liability shall be paid in cash before GST implementation. Extra VAT credit shall be taken in GST as SGST credit. Later it can be used to pay SGST or IGST as needed.

Thanks a lot sir, for this nice explanation of my GST query. God bless you! I hope this post'll clear many doubts of GST concern.
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Thanks a lot Sir.....You describe the whole GST process extremly very well.I would like to forward your explanation to others so that everyone can understand the right process of GST set off.god bless you !!

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