Cst & gujarat vat

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Girish Joshi (Querist)
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24 November 2011 My question is :

Like one gets Input VAT Credit against Output VAT,
Can one get Input CST Credit against Output CST ?

In our Co., we are not taking Input CST Credit. On the other hand we are also deducting 2% of Deemed OGS Purchase (on the same Ratio on Total Purchase, that is of OGS SALES : TOTAL SALES) from our Input VAT Credit.

This way we are losing 2% Input CST + 2% on Deemed OGS Purchase as Deduction from Input VAT = 4% on OGS Purchase every month.

Is there any solution to this ? Is it correct what we are doing ?

THanks for the reply & best regards,

CA R N Mohil

CA R N Mohil (Expert)
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01 December 2011 CST paid on OGS purchase is not allowed to be set off either against output vat or CST payable on OGS Sale.

w.e.f 01-07-2011 if there is OGS sale the assessee is also required to reverse the 2% input vat credit taken on purchases of such goods .