VAT input tax credit in GST

[Raman Singla]

What will the input tax credit in GST (18%) for VAT @5% ????

e.g. ₹10000/- paid VAT is on books for purchase of 2 lacs...now if sale is made of 2 lacs , GST wil be @15 % = ₹36000/-

How much tax should be deposited ??????

[Himansu Sekhar]

Vat will be entered in tran 1 so that it will be available as sgst credit.

[Ganeshan Kalyani]

VAT credit of ₹ 10 k will be eligible to you to set off against GST liability.

[Ganeshan Kalyani]

Yes, as said by Sri Himansu Ji VAT credit will be allowed to set off against SGST liability.

[Himansu Sekhar]

Thank you sir

[Raman Singla]

Means It will adjusted only in SGST not in IGST ????

AI Summary

VAT Credit Can Offset SGST Liability, Not IGST, Under GST System; Discussing 5% VAT vs. 18% GST Adjustments A query was raised regarding the input tax credit for VAT under the GST system, specifically how a VAT of 5% on purchases would be adjusted against a GST of 18% on sales. The discussion clarified that the VAT credit can be used to offset the State GST (SGST) liability. Participants confirmed that the VAT credit of 10,000 would be eligible for setting off against the SGST liability, but not against the Integrated GST (IGST). The conversation included thanks and further clarification on the applicability of the credit.