Comparison between VAT & GST

Comparison between VAT & GST


Very simple way to understand

                           
VAT - is state specific limit 10 L
GST - GST Registration limit 20 L +

VAT - TIN based Registration
GST - PAN based Registration

VAT - Interstate transactions (CST) no Input Tax Credit
GST - Seamless flow of Input Tax Credit

VAT - Declaration Forms like C, H etc are applicable
GST - No Declaration Forms


VAT - Returns within 45/60 days from end of quarter
GST - Returns by 20th of suceeding month but in a phased manner (Sales by 10th, Purchases by 15th and payment by 20th)

VAT - There is no specific mode of payment
GST - Mode of payment if exceeds 10,000 by e-payment, less than is optional

VAT - Immediately after filling avail Input Tax Credit
GST - Once the Supplier pay tax then only seller gets ITC

VAT - No rating for the Business
GST - GST rating based on timely filling of returns & payments..