After the implementation of GST, indirect taxes like VAT, excise duty and service tax were removed. There are multiple differences between GST and VAT. Below you'll find a list of differences between GST and VAT-
- GST payment depends on goods and services. On the other hand, VAT payment depends on the sale of goods.
- GST applies to the supply of goods and services. VAT is only applicable at the time of sale of goods.
- For GST, tax rates are uniform across India. In the case of VAT, laws and rates are different for each state.
- The state and the central government equally share the collected GST. VAT, however, stays under the state government.
- Filing of GST takes place for the preceding month on 20th of the next month. Filings of VAT returns take place on the 10th, 15th and 20th of the next month for preceding month.
- Input tax credit benefit is available for GST but not for VAT.
- The set of compliances is similar in the case of GST. For VAT, the movement of goods between states differs from one state to another.
- Central govt. collects GST and the seller’s state collects VAT.
Introduction of GST has successfully solved the cascading issues that were present earlier in the taxation system. Unlike before, when tax was deducted at every stage of production, now, consumers have to pay taxes only for the end product.
This is all about VAT in Chhattisgarh. Knowing the basic details is essential for an individual to avoid any hassles while paying it to the relevant authority.