Hi Sir,

For the month of September we input vat amount is more than the output collected plese suggest what should be done?



Posted 2 years, 3 months ago by sujaykiran byrappa

You have to pay the vat collected from customers to government. You can pay it either by cash/cheque or by using vat input credit.

Since you have excess vat input, you can pay it by using the input credit.

While filing the monthly vat return mention purchase and sales along with tax on them.

You can carry forward the excess credit to next month.

Coming to practical part, you just need to fill the sales and purchase amounts, rest is automated. You need not to pay vat by cash/cheque.

Posted 2 years, 3 months ago by CA Pulkit Sharma

You just have to file the VAT return by mentioning the sale & purchase. You need not pay any VAT since VAT paid on purchase exceeds the VAT on Sales. The excess input credit can be carried forward to next month & can be used towards the Output VAT Payable in the next month.

Posted 2 years, 3 months ago by Mukesh Jain CA

Pratical answer to your question is

a. Why did the excess input arise 

  1. Is it due to interstate sales...?

  2. Is it due to export sales.... ..?

  3. Or Untilised / unsold inventory on hand...?


If the answers for your question is 1 or 2 than the credit can be either carried forward or may be asked for refund. There is no requirement of VAT assessment to claim for refund. You have to approach the LVO.

If the excess input vat credit is due to the fact that there are unsold / unutilised inventory, credit carried forward be adjusted subsequently when goods are moved out.

Typically my experience suggests VAT is a value addition to the purchase cost and incremental tax on every stage of sale. As VAT is levied on incremental stage, input credit shall not arise other than above instances.

Hope i have tried to provide some insights to your question

S Kamath


Posted 2 years, 2 months ago by CA Sundeep Kamath

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