Question

Differentiate between Value Added Tax and Goods and services Tax

Answer 1

Answer:

A dealer under VAT collects tax on his sales, retains the tax paid on his purchase and pays the balance to the government. ... Under GST, the tax is levied at every point of sale. In the case of inter-state sales, Integrated GST will be levied and in case of intrastate supplies, CGST and SGST will be charged.

Explanation:

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Answer 2

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Differentiate between Value Added Tax and Goods and services Tax

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VAT is a multi-point tax, whereas Service Tax is a single point tax.

VAT is charged on physical items i.e. goods while Service Tax is charged on non-physical items. i.e) services.

The State Government imposes VAT, but Central Government imposes services Tax. VAT is governed by the statute of the respective state.

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