Tnvat input tax reversal against cst sale

Hi, Please refer the thread which is already discussed in ca club forum. Hope this will help you to understand.

/forum/regarding-tnvat-amendment-act-28-of-2013-273625.asp

Suppose, VAT Purchase of Rs.9 lacs @ 5% = 45,000   VAT Sales of Rs.4 lacs @ 5%= 20,000 CST Sales of Rs.6 lacs @ 2% = 12,000   and Reverse Tax Credit on CST sale of Rs.6 lacs @ 3%=18,000

In Form I  9 lacs = 45,000 - 18,000 = Now, ITC Available Rs.27,000 less VAT Payable Rs.20000/-, Now,,ITC of Rs.7,000/- Available to setoff CST Rs.12,000. Therefore you have to pay Rs.5000/- CST TAX