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Shoul i pay vat or cst?

22 June 2015

Hi,

We sell via online portals (e-commerce). So we have to pay the VAT or CST?? our most of the orders come from other states. Please provide some info regarding this.

Thank you

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4 Replies

Deepak sharma (Learner) (1431 Points)
Replied 22 June 2015

Billing Address ??

depend on Billing Address if intra state then it would be VAT and CST in case of interstate Billing Address

1 Like

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Prateek Prakash (Others) (41 Points)
Replied 10 November 2015

HI,

My purchases exeeds my sales. And we are paying VAT and CST both. Now the amount which has to be paid as sales tax is negative. So it should affect the VAT only or CST as well?? Means should we pay Zero VAT and Zero CST or only Zero VAT and full CST?? And for how long we pay Zero VAT, as our most sales are interstate.

Purchase made are from local dealers.

Please clarify. Thanks

Deepak sharma (Learner) (1431 Points)
Replied 10 November 2015

You can follow the below steps to calculate your liability !

If Case1- > VAT given on Purchase is Rs 5000.00 , VAT Charged from Customers (Local) is Rs 4000.00 and CST charged from 400.00,

Calculation -> Output VAT 4000.00

Less: Input VAT 5000.00

VAT Credit -1000.00

Less : Adjust CST 400.00

VAT Credit C/f -600.00 (You have VAT Credit balance which you can carried forward to next Tax Period Or also claim for Refund)

If Case2- > VAT given on Purchase is Rs 5000.00 , VAT Charged from Customers (Local) is Rs 1000.00 and CST charged from 4500.00,

Calculation -> Output VAT 1000.00

Less: Input VAT 5000.00

VAT Credit -4000.00

Less : Adjust CST 4000.00 (Here VAT for Rs 4000 adjust with your CST Liability of Rs 4500.00 , Hence you need to Deposit Balance CST Amount i.e 500.00)

If Case3- > VAT given on Purchase is Rs 5000.00 , VAT Charged from Customers (Local) is Rs 5500.00 and CST charged from 200.00,

Calculation -> Output VAT 5500.00

Less: Input VAT 5000.00

VAT Payable 500.00 (You need to Deposit VAT Rs 500.00)

and CST Payable 200.00 (You need to Deposit CST Rs 200.00)

Thanks

Regards

Deepak Sharma

dsharma8583 @ gmail.com

1 Like

Madhukar N Hiregange (Chartered Accountant) (39034 Points)
Replied 17 November 2015

Originally posted by : Prateek Prakash

Hi,

We sell via online portals (e-commerce). So we have to pay the VAT or CST?? our most of the orders come from other states. Please provide some info regarding this.

The VAT/ CST is applicable based on the situs of goods when the sale is made. If the goods are moving from State A to State b- then CST ONLY.

If within the State itself then local VAT.

Thank you