The state of Gujarat is renowned as one of the economic hubs in India and goods sold in Gujarat is taxed by the VAT Act, 2003. Each of the State decides levies collection and VAT related transactions in India.
Hence, the Gujarat VAT payment applies to entire Gujarat and affects all VAT tax in Gujarat state. We would discuss the processes involved in registering for VAT or TIN in Gujarat as well as Gujarat VAT Return Filing and VAT Tax Rates.
Gujarat VAT Registration
VAT registration is compulsory in Gujarat for businesses with an accumulative turnover of more than Rs.5, 00,000 and Rs.10, 000 or more taxable turnover. Additionally, all business persons eligible to register under the Central Sales Tax (CST) Act needs also to have a Gujarat VAT Registration done. Those with a turnover in the first year exceeding the threshold turnover for registration should also register for Gujarat VAT.
Furthermore, any business setup with a taxable turnover of more than Rs.10, 000 is mandated to obtain Gujarat VAT Registration. Any individual intending to start a business in Gujarat may also obtain voluntarily register for Gujarat VAT.
Gujarat VAT Tax Rates
The Gujarat VAT Tax Rates depends on the business type and the type of goods sold. The tax rates can be widely separated into three major parts according to the tax plan in Gujarat as follows:
- Plan 1 – VAT Tax Exempt Goods – Examples of goods and services in this plan include books, journals, aid for physically challenged persons, books, electricity, etc.
- Plan 2 – Numerous VAT Tax Rates based on the type of goods and services. Examples of this include IT equipment, plant, and machinery, papers, honey, etc.
- Plan 3 – Numerous VAT Tax Rates to cover for the sale of Petroleum Motor Spirits (PMS), Aviation Fuel, Kerosene, and High-Speed Diesel Oil.
In Gujarat, an exemption id from VAT tax is given to Developer or Co-developer of a Special Economic Zone or goods supplied to a mission in a Special Economic Zone.
Gujarat VAT Return Filing
Dealers in Gujarat, with VAT payment of Rs.60, 000 and above in the present or previous year, dealers of Plan 3 goods enjoy tax exemption. Dealers in Special Economic Zone and those having refunds under section 40 or 41 must make the monthly filing of Gujarat VAT returns. Dealers with the approval to pay tax in a lump sum and those without vat tax of Rs.60, 000 or more are permitted to file quarterly returns. Aside from the monthly or quarterly returns, the dealer needs to prepare an annual return by June 30, if the total turnover is lower than Rs. 1 crore or by 31st December if it’s above Rs.1 crore. You could file for Gujarat VAT Return through their website http://www.commercialtax.gujarat.gov.in.
Gujarat VAT Payment Due Date
Gujarat VAT payments must be remitted within 22 days from the month end or every three months in which the VAT Return is filed. Only dealers listed under Plan 3 must remit their VAT within 12 days from the month end.