Distinguish between GST and CENVAT

 

Difference between CENVAT and GST



Distinguish between GST and CENVATWhat is GST? How does CENVAT work? How does GST differ from CENVAT?


CENVAT means Central Value Added Tax. CENVAT credit is a credit in respect of central excise on inputs purchased for the manufacture or duty paid in relation to the manufacture of the final product. GST is the short form of Goods and Service Tax, which abolishes many indirect taxes including CENVAT system. CENVAT is levied up on manufacture of excisable goods in India. CENVAT is levied at the time of movement of goods from manufacturing point, whereas GST is paid at end user stage.


Details on GST and CENVAT is mentioned separately in simple terms, easy language to make everybody understand in this web blog. You may click below links to know more:



What is Goods and Service Tax?


How does CENVAT work?


This posts explains about difference between GST and CENVAT briefly.



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