about the vat rate of selling raw material

[MEHUL ASHAR]

Respected Sir,

                         I have got a raw material charged at 15% but on my product I have to charge 5% so if I want to sale that raw material then I have to charge 15% or 5%.

[YAGAY andSUN]

If you are selling rawmaterial as such then you would have to reverse the Input Tax Credit so availed.

AI Summary

Seller Must Reverse Input Tax Credit on Raw Materials Sold as Is at Different VAT Rate A participant inquired about the appropriate VAT rate to apply when selling raw materials that were initially charged at 15%, while their product is charged at 5%. The response indicated that if the raw material is sold as is, the seller must reverse the Input Tax Credit previously availed.