Sage-Tips

Is VAT is applicable after GST?

The Goods and Services Tax (GST), which has replaced the Central and State indirect taxes such as VAT, excise duty and service tax, was implemented from 1st July 2017.

Which items are still under VAT?

Examples of items that attract VAT at 4-5\% include cooking oil, tea, medicines, etc. General: Items that fall under the general category attract VAT at 12\% to 15. The items that fall under this category are mainly luxury items such as cigarettes, alcohol, etc.

Which of the following products are outside the purview of GST?

Petroleum Products such as petroleum crude, motor spirit (petrol), high speed diesel, natural gas and aviation turbine fuel etc. are also kept outside the purview of GST in India.

What is VAT liable?

The VAT Liability account (2202) is the account that VAT amounts are emptied into, when closing a financial period. At the year end there is not to be any balance on any other VAT accounts besides account 2202. The balance on account 2202 will be on the opening balance for the following year.

What is VAT applicable?

The standard rate of VAT in the UK is currently 20\% and this is the rate charged on most purchases. However, there are other VAT rates which you need to be aware of as a business. Reduced rate VAT is charged on sanitary products, energy saving measures and children’s car seats and is charged at 5\%.

What is not included in GST?

Goods like petrol, alcohol, etc that for human consumption and non-taxable do not attract GST for supply under the GST Act. The supply of goods to the SEZ that is Special Economic Zone or SEZ developer comes under GST exemption list.

Which items are included in GST?

What is Included Under the 5\% GST Rate List?

• Edible oil, spices, tea, coffee, and sugar.
• Coal.
• Indian sweets or Mithai.
• Life-saving drugs and medicines, like insulin.
• Numismatic coins.
• Ice and snow.
• Walking sticks.
• Different accessories or carriage parts for differently-abled individuals.

Which tax are not covered under GST?

GST will not cover the Toll Tax as such taxes like road tax, toll tax, environment tax and others are directly paid by users and will be levied by States directly.

Which items are taxable under GST?

GST Tax Rates on some common items

Tax Rates	Products
5\%	Household necessities such as edible oil, sugar, spices, tea, and coffee (except instant) are included. Coal, Mishti/Mithai (Indian Sweets) and Life-saving drugs are also covered under this GST slab.
12\%	This includes computers and processed food

Is VAT charged on Labour and materials?

Employment businesses who are deemed to be supplying staff charge VAT on their supply as usual. However, if you supply your services as a labour only contractor then the VAT reverse charge will apply.

What goods are exempt from VAT and GST?

Exempt/tax-free items – It’s also worth noting that some goods which are exempt from VAT may not be exempt from GST, and vice versa. For example, precious metals are GST-free in Australia, but while gold is exempt from VAT in the UK, silver, palladium, and platinum are not.

Which products will be kept outside GST?

The full range of petroleum products, including crude oil and motor spirits including Aviation Turbine Fuel (ATF) and High Speed Diesel (HSD), would be kept outside GST, as is the prevailing practice in India. Sales tax could continue to be levied by the states on these products with the prevailing floor rate.

What is the difference between GST and VAT tax?

Rate of taxation – When it comes to GST vs VAT tax, VAT is typically higher than GST. Whereas the rate of VAT in the UK is 20\%, the rate of GST in Australia, Singapore, and Canada is 10\%, 7\%, and 5\%, respectively. Exempt/tax-free items – It’s also worth noting that some goods which are exempt from VAT may not be exempt from GST, and vice versa.

Which is the best example of different between levied of GST?

The best example of Different between levied of GST or old Indirect tax is the bill of the restaurant because in restaurant bill both items include the sale of goods as well as the supply of services. As the image shown that the number of taxes is subsumed into a single tax is called GST. Please comment on your feedback whatever you want.