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

ITC / Input 1666 views 5 replies

Dear CAClubian,

Greetings!!

I have query regarding Service tax and vat migration in GST. For supposed that someone has to be liability in service tax along with has Input credit more than its service tax liability, So in this scenario, let me know that Its service tax liability can be set off by Vat Input credit at the time of GST apply.

Thanks for the anticipated response.

With Best Regards
Naveen Sethi
www.sethisolutions.com

Replies (5)

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.
And request you kindly subscribe my You tube channel of Tally Gyan 

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 !!

Tally Gyan

sir....... is there any process for that ........ or else automatically climed????


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