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What is cenvat credit?

Answer Posted / Hemant Kumar

CENVAT (Central Excise and Value Added Tax) credit is a tax benefit provided to businesses in India that are registered under the Central Excise Act, 1944 or Service Tax. CENVAT credit is the input tax paid on inputs used in the manufacture of goods or provision of services, which can be offset against the output tax liability of the business. This helps reduce the overall tax burden for businesses.

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