How to pay VAT?
VAT will be paid along with monthly returns. Credit will be given within the same month for entire VAT paid within the state on purchase of inputs and goods. Credit thus accumulated over any month will be utilized to deduct from the tax collected by the dealer during that month. If the tax credit exceeds the tax collected during a month on sale within the state, the excess credit will be carried forward to the next month. Which goods will be taxable under VAT? All goods except those specifically exempt. What types of input tax are eligible for VAT credit? • Input tax credit is given for entire VAT paid within the state on purchases of taxable goods meant for resale/manufacture of taxable goods. • Input credit excludes purchases: • from unregistered dealers • from other states/countries • of goods used in manufacture of exempted goods • of capital goods • goods used as fuel in power generation • of goods to be dispatched as branch transfers outside Gujarat • of goods used in manufacture
