{"id":190,"date":"2017-05-02T16:56:45","date_gmt":"2017-05-02T11:26:45","guid":{"rendered":"http:\/\/www.gsthelplineindia.com\/blog\/?p=190"},"modified":"2019-09-13T12:47:49","modified_gmt":"2019-09-13T12:47:49","slug":"difference-between-gst-and-vat-with-example","status":"publish","type":"post","link":"https:\/\/www.gsthelplineindia.com\/blog\/2017\/05\/02\/difference-between-gst-and-vat-with-example\/","title":{"rendered":"Difference Between GST and VAT with Example – VAT vs GST"},"content":{"rendered":"

Want to know the difference between GST and VAT? Let’s compare VAT vs GST with the example!<\/p>\n

The Goods and services tax in India has been implemented from 1st July 2017, and it is supposed to bring a revolutionary change in the Indian taxation system with its unique model of implementing \u2018one tax one nation\u2019 formulae.<\/p>\n

The GST has consumed all the indirect tax including VAT, service tax, Excise duty, octroi and all another indirect form of duties which were levied on every value addition of the product thus creating a cascading effect. And for this effect, GST has implemented to take down the unnecessary inflation.<\/p>\n

While GST is an another form to make taxation easier, the VAT (value added tax) is a duty which is applied at every point starting from the manufacturing till the product goes into the hands of the consumer.<\/p>\n

The value-added tax has its name from the method of adding tax at every stage. Goods and services tax and Value added tax have a number of differences on the basis of various points, like:
\nReturn File Schedules<\/p>\n

As mandated by the GST council and apex authorities, a taxpaying entity is required to file the returns and all the details of its sales by the means of online by the 10th of every succeeding month in the form GSTR-1<\/a> and keeping in mind the same method, the taxpayer will have to fill all the details of the purchases by the 15th of every month in the form GSTR-2<\/a> in the succeeding taxable month.<\/p>\n

While at the 20th day of every month succeeding from the taxable month, the taxpaying entity must file its monthly return in the form GSTR-3<\/a>. While at the end of the year, the taxpayer must file its annual return up to the date 31st December in the form GSTR-8 of the upcoming financial year.<\/p>\n

While in the VAT system, the taxpaying entities are required to file the VAT return each quarter along with the sales register and the purchase register.<\/p>\n

By the end of the year, the taxpaying entities are also obliged to file the annual return. Generally, in every state except, Maharashtra and Karnataka there is a provision of quarterly return as in these two states there is a provision of monthly return.<\/p>\n

Contents<\/p>