CST Liabilitity payment adjust in VAT input

[G.Narayanan Ganapathy]

Dear Sir/Madam

I am working scarp company in Tamilnadu.

I am purchase of scrap in CST Purchase and VAT Purchase.

Sales in CST High with compare to VAT Sales.

VAT Purchase in High so the Input available.

CST Sales Liability adjusted in VAT Input is correct or not.

CST Sales Liability for tax paid only.

Clarified the any notification or circular given for future reference.

AI Summary

Scrap company queries using VAT input to offset CST sales liability; ITC benefits not applicable for CST purchases. A participant from a scrap company in Tamil Nadu inquired about adjusting CST sales liability against VAT input, noting higher CST sales compared to VAT sales and significant VAT purchases. They sought clarification on whether CST sales liability could be offset with VAT input and requested any relevant notifications or circulars for future reference. A consultant responded, explaining that Input Tax Credit (ITC) can be used to adjust liabilities from intra-state and interstate sales, but ITC benefits are not applicable for CST purchases.