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Vat & cst related transaction in gujarat

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Deepak

Partner

24 Points Posted on 10 June 2012

Hello everyone, I have recently started a metal scrap trading business and one question is troubling me. If any of the VAT experts can please solve my query then i will be really thankfull. I got too many different answers, so please help. My query is as below: If I have purchased material from Gujarat by paying 5% VAT and then sell it in another state against C form with 2% CST. 1) can I adjust CST against VAT or I will have to pay cst collected from my buyer? 2) How much VAT credit will I get in above case? 3) what will be my net VAT loss (if there is any reduction) Please answer in context of gujarat VAT as my CA told me that it can be adjusted but it is allowed in gujarat only. Is it true or not Thanks in advance Your response will be highly appreciated. Thanks & Regards, Deepak Devaria

Replies (1)

Harshal Fifadra

Chartered Accountant

1249 Points Posted on 12 June 2012

Dear Deepak

Assume the following : VAT PAID = 50 ( IN CASE OF LOCAL PURCHASES ) , CST COLLECTED = 20 , VAT COLLECTED ( IN CASE OF LOCAL SALE ) = 40

Here There is a refund of Rs 10 ( 40-50 ) and since there is a refund in VAT , you can adjust your CST liability against VAT upto the amount of refund i.e Refund of Rs10 would be adjusted against Rs10 of CST liability and finally net CST PAYABLE by you would be Rs 10 ( 20-10 )

Ok ...