Will input tax credit be adjusted against CST payable by the assesses?
Dear friend, Your question is about whether we can adjuste the the Central Sales Tax payable against The Value Added Tax receivable. The answers is Yes, we can adjust the balance of vat receivables against the cst payable. This is because the one due from the government (VAT) and other is due to government (CST) there fore the balance of the vat receivables adjusted against the cstpapayable. On the other hand if CST payable is more than the balance in vat receivables accountthen the bbalance amount will be payables to government. (Net balance payable after adjustment of the following Input vat on purchased (+)opening vat balance in vat credit a/c (-)output vat on sale (-)output cst on sale = balance payable/ receivable.