{"id":25723,"date":"2021-02-09T12:43:16","date_gmt":"2021-02-09T07:13:16","guid":{"rendered":"https:\/\/corpbiz.io\/learning\/?p=25723"},"modified":"2021-02-09T12:43:19","modified_gmt":"2021-02-09T07:13:19","slug":"effect-of-vat-return-after-gst-implementation","status":"publish","type":"post","link":"https:\/\/corpbiz.io\/learning\/effect-of-vat-return-after-gst-implementation\/","title":{"rendered":"An Outlook on Effect of VAT Return after GST Implementation"},"content":{"rendered":"\n<p class=\"has-drop-cap\">Four years of GST implementation are to be completed. Initially, it was expected that the industry would have an estimated period of two years to fully understand GST and comply with the provisions of GST law. However, it seems that more than the industry, the tax administration seems to be lagging behind. Several initiatives are being taken by the Indian government day in and day out such as amending the law, series of GST Council meetings, changes in several rates and VAT return at the end. Over the years, the necessary processes will be streamlined, but with the process of filing a detailed statement, etc. It was estimated that within four times the current pace, it seems that it will take longer to streamline business processes under <a href=\"https:\/\/corpbiz.io\/gst-registration\"><strong>Goods and Services Tax<\/strong><\/a>.<\/p>\n\n\n\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_82_2 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title ez-toc-toggle\" style=\"cursor:pointer\">Page Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 eztoc-toggle-hide-by-default' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/corpbiz.io\/learning\/effect-of-vat-return-after-gst-implementation\/#What_do_you_mean_by_VAT_Return\" >What do you mean\nby VAT Return?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/corpbiz.io\/learning\/effect-of-vat-return-after-gst-implementation\/#What_do_you_mean_by_GST\" >What do you mean by GST?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/corpbiz.io\/learning\/effect-of-vat-return-after-gst-implementation\/#What_is_the_Difference_between_VAT_Return_GST_Return\" >What is the\nDifference between VAT Return &amp; GST Return?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/corpbiz.io\/learning\/effect-of-vat-return-after-gst-implementation\/#Return_Claims_Before_and_After_GST_Implications\" >Return Claims\nBefore and After GST Implications<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/corpbiz.io\/learning\/effect-of-vat-return-after-gst-implementation\/#Concluding_Remark\" >Concluding Remark<\/a><\/li><\/ul><\/nav><\/div>\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_do_you_mean_by_VAT_Return\"><\/span>What do you mean\nby VAT Return?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>VAT (Value-added tax) is a sort of indirect tax imposed for value-added goods at every point of the production or distribution cycle, starting with raw materials and going all the way to final retail purchases. VAT return was implemented on 1 April 2005. Under this, the amount of value addition is first recognized at each stage, and then taxed at the same.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">Disadvantages of VAT Return<\/h3>\n\n\n\n<ul><li>Different VAT rates in different states<\/li><li>Cascading effect of taxes<\/li><li>Different VAT laws in every state<\/li><li>It was not possible to claim ITC on service under VAT<\/li><\/ul>\n\n\n\n<p class=\"text-left\"><b>Read our article<\/b>:<mark style=\"background: #fffd03 !important\"><a href=\"https:\/\/corpbiz.io\/learning\/apply-for-gst-registration-certificate-online\/\">How to apply for GST registration certificate online?<\/a><\/mark><\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_do_you_mean_by_GST\"><\/span>What do you mean by GST?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>GST is popularly known\nas Goods and Services Tax. It known&nbsp; as an\nindirect tax that has replaced various &nbsp;indirect taxes in India such as excises, VAT\nreturn, service tax, etc. The GST Act was introduced in Parliament on 29<sup>th<\/sup>\nMarch 2017 and came into existence on 1<sup>st<\/sup> July 2017.<\/p>\n\n\n\n<p>In other word, GST is\nimposed on the supply of goods and services. The Goods and Services Tax law in\nIndia is a multi-tiered, comprehensive, destination-based tax imposed on every\nvalue addition. GST is a single domestic indirect tax law for the entire nation.<\/p>\n\n\n\n<h3 class=\"wp-block-heading\">What are the Benefits of GST\nRegistration?<\/h3>\n\n\n\n<ul><li>Higher limit for registration<\/li><li>Simple and easy online process<\/li><li>Prescribed treatment for e-commerce operators<\/li><li>Better efficiency of logistics<\/li><li>GST eliminates cascading effect of tax<\/li><li>Unorganized sector is regulated under regime of\nGST<\/li><li>Structure plan for small businesses<\/li><li>Number of Compliance is less<\/li><\/ul>\n\n\n\n<h3 class=\"wp-block-heading\">Disadvantages of GST<\/h3>\n\n\n\n<ul><li>GST will mean an increase in operating costs<\/li><li>GST is an online taxation system<\/li><li>SMEs will have higher tax burden<\/li><li>GST-compliant<\/li><li>Cost increase due to software purchase<\/li><li>GST came into force in the middle of the\nfinancial year<\/li><\/ul>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"What_is_the_Difference_between_VAT_Return_GST_Return\"><\/span>What is the\nDifference between VAT Return &amp; GST Return?<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<table class=\"table table-bordered\"><tbody><tr><td>\n  <strong>GST Return<\/strong>\n  <\/td><td>\n  <strong>VAT Return<\/strong>\n  <\/td><\/tr><tr><td>\n  GST taxed on both goods and services\n  <\/td><td>\n  VAT taxed on sale of goods\n  <\/td><\/tr><tr><td>\n  GST is applicable on supply of goods\n  <\/td><td>\n  VAT return is applicable at the time of sale of goods\n  <\/td><\/tr><tr><td>\n  Under GST, tax rates are uniform across India\n  <\/td><td>\n  Under VAT tax rates varies differs from state to state\n  <\/td><\/tr><tr><td>\n  The tax is collected by the central\/state government\n  <\/td><td>\n  The tax is collected by state government in which the sale takes place\n  <\/td><\/tr><tr><td>\n  In GST, returns need &nbsp;to be filed\n  on 20<sup>th<\/sup> day of every &nbsp;next\n  month for the preceding month\n  <\/td><td>\n  The due dates for filing returns are 10<sup>th<\/sup>, 15<sup>th<\/sup>\n  &amp;&nbsp; 20<sup>th<\/sup> &nbsp;of the next month for the last month\n  <\/td><\/tr><tr><td>\n  In GST, both online and offline payment options &nbsp;are available (Online payment is mandatory\n  if the GST payable is more than Rs. 10,000)\n  <\/td><td>\n  There is only offline option available\n  <\/td><\/tr><tr><td>\n  ITC benefit is available, i.e. a taxpayer can claim the credit on the\n  supplies (Goods and Services) received\n  <\/td><td>\n  No ITC benefit is available on customs duty paid\n  <\/td><\/tr><tr><td>\n  Compliances for the supply &nbsp;of\n  goods between states remains same\n  <\/td><td>\n  Compliances for the supply of goods between states differ from one\n  state to another.\n  <\/td><\/tr><tr><td>\n  In GST consumer state collect tax\n  <\/td><td>\n  In VAT seller state collect tax\n  <\/td><\/tr><\/tbody><\/table>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Return_Claims_Before_and_After_GST_Implications\"><\/span>Return Claims\nBefore and After GST Implications<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Before GST-Traders filed their excise June returns and VAT June quarter\nreturns in accordance with the prevailing provisions of the current regime\n(unless later extended by notification). Excise returns filed by 10 July, each\nyear. The VAT return due on July 21 (in most states). The service tax return\nhas to be filed by 25 July.<\/p>\n\n\n\n<p>After GST-If any refund is claimed for excise \/ services\/VAT for products\nafter the GST is implemented; such refund will be processed as per excise\/ VAT\nlaws.<\/p>\n\n\n\n<h2 class=\"wp-block-heading\"><span class=\"ez-toc-section\" id=\"Concluding_Remark\"><\/span>Concluding Remark<span class=\"ez-toc-section-end\"><\/span><\/h2>\n\n\n\n<p>Given the significant difference between GST and VAT, it is clear that in many ways the Goods and Service Tax can be considered as an improvement over the VAT regime. As GST develops further, we can expect additional goods and services to be included under GST. More rationalization of rates under GST is expected in the near future which will help improve indirect tax collection across <strong><em>India<\/em><\/strong><sup><a href=\"https:\/\/en.wikipedia.org\/wiki\/India\"><strong><em>[1]<\/em><\/strong><\/a><\/sup>. Kindly associate with the <a href=\"https:\/\/corpbiz.io\/\"><strong>Corpbiz<\/strong><\/a> expert to know more about effect on VAT returns after GST implementation.<\/p>\n\n\n\n<p class=\"text-left\"><b>Read our article<\/b>:<mark style=\"background: #fffd03 !important\"><a href=\"https:\/\/corpbiz.io\/learning\/obtain-gst-registration-in-india\/\">How To Obtain GST Registration in India?<\/a><\/mark><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Four years of GST implementation are to be completed. Initially, it was expected that the industry would have an estimated period of two years to fully understand GST and comply with the provisions of GST law. However, it seems that more than the industry, the tax administration seems to be lagging behind. Several initiatives are [&hellip;]<\/p>\n","protected":false},"author":32,"featured_media":25764,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[16],"tags":[1516],"acf":{"service_id":"96"},"authorName":"Komal Singh","authorImageUrl":"https:\/\/corpbiz.io\/learning\/wp-content\/uploads\/2020\/12\/processed.jpeg","authorDescription":"Komal Singh is a Legal scholar, having diverse experience in scripting research papers, articles &amp; dissertations, which serves her main interest &amp; competent in drafting legal documents. She has polished her skills in dealing with the matter related to consumer affairs and now building intelligible Legal Content for Corpbiz.","postViews":3905,"readingTime":3,"_links":{"self":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/25723"}],"collection":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/users\/32"}],"replies":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/comments?post=25723"}],"version-history":[{"count":11,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/25723\/revisions"}],"predecessor-version":[{"id":25763,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/posts\/25723\/revisions\/25763"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media\/25764"}],"wp:attachment":[{"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/media?parent=25723"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/categories?post=25723"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/corpbiz.io\/learning\/wp-json\/wp\/v2\/tags?post=25723"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}