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  3. VAT
  4. VAT In Arunachal Pradesh
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    VAT in Arunachal Pradesh: Rates, Eligibility, Registration Process & Fee

    vat in arunachal pradesh
    Source: business-northeast

    In the state of Arunachal Pradesh, VAT is levied according to the Arunachal Pradesh Goods Tax Act (2005). Based on the sections of this act, taxes are imposed on various goods and services. VAT came into the scene to eradicate double taxation due to faults in the prevalent Sales Tax structure.

    Team Digit

    What Is Value Added Tax?

    what is value added tax
    source: marketing91

    Value-added tax (VAT) is an indirect tax levied on any products or services at each stage where the value gets added. For levying this tax, firstly, value addition at each stage is calculated and based on it, the amount is set. The final consumer has to pay the tax. This is why it also falls under the category of consumption tax.

    It was introduced on 1st April 2005. VAT is charged on the product price subtracted by the cost of material in the product taxed earlier. Each state has their own VAT laws, and based on them, different VAT rates are levied in different states.

    What Are the VAT Rates for Goods or Services in Arunachal Pradesh?

    A total of four schedules are there in the act that mentions the rates of VAT in Arunachal Pradesh. Further, a number of goods are exempted from VAT. The table below is a representation of VAT rates that are levied on various goods and services in Arunachal Pradesh:

    Schedules

    Applicable Goods or Services

    VAT Rates in Arunachal Pradesh

    Schedule I

    Sugar, unprocessed salt, fresh plants, ginger, garlic, organic manure, charcoal and many more

    Exempted

    Schedule II

    Silver, Gold, other precious metal, articles made of precious stones, jewellery and imitation Gold

    1%

    Schedule III

    150 types of goods that include printing ink, starch, acid, natural rubber, tamarind, animal fats, metal ores, plastic footwear, switches, microphones, bags and many more

    4%

    Schedule IV

    Narcotics, liquor(along with the non-potable ones), molasses, petrol, turbine fuel and any other product that are obtained from natural gas or petroleum

    20%

    Who Should Pay VAT in Arunachal Pradesh?

    Dealers with a turnover exceeding Rs. 5 lakh in the current year have to register to pay VAT. Other than these, dealers who do not qualify under the sections of the act to pay VAT but wish to register can do so. People, who wish to start a venture from a particular date that would qualify under the section of the act for paying VAT,  can register beforehand.

    How to Register for VAT in Arunachal Pradesh Online?

    VAT registration in Arunachal Pradesh can be done online using the official website for VAT registration and returns by the Arunachal Pradesh government. The steps for registration are as follows:

    Step 1 - Click on e-Registration under e-Services online

    Step 2 - A new page will open that displays Welcome to VAT Online Registration System

    Step 3 - Click on e-registration for VAT

    Step 4 - Form RF- 01 will open

    Step 5 -  All details asked for should be provided

    Step 6 - Upload all scanned documents along with the application form

    An AKP slip will be generated that will contain a unique number. Note it down or save it for future reference.

    How to Pay for VAT Registration Fee in Arunachal Pradesh Online?

    While registering, you must first fill up the form RF-01. Then you must provide the necessary information. And after this comes the step of paying the fees so as to complete the process of registration. The VAT registration fees in AP are 1% of the property value. While paying the fees, some documents will also be asked for. When these steps are completed, then only your registration will be forwarded to the office for approval. The payment process are as follows -

    Step 1 - Pay registration fees using the e-payment method on the official portal of Arunachal Pradesh Government VAT registration.

    Step 2 - Check your e-registration status

    Step 3 - The registration certificate will be sent to you via post, once your registration has been approved.

    With the help of these steps, you can easily register your business and take a step ahead towards paying VAT hassle-free.

    How to File a Return Against the VAT Payment in Arunachal Pradesh?

    Any individual can file their VAT return by using the official website of the Arunachal Pradesh Commercial Tax Department. Those who have already registered can do so by :-

    Step 1 - Enter the credentials.

    Step 2 - Attach the necessary copies and completed application form.

    Step 3 - Once you complete the process, a system-generated acknowledgement slip will be initiated.

    Step 4 - Use the acknowledgement number and date to pay VAT online.

    The system will generate a receipt that can be of use for future reference as proof of paying tax.

    How Is VAT Different From GST in Arunachal Pradesh?

    With implementation of the Goods and Services Tax in 2017 all other types of taxes got amalgamated into it. The difference between VAT and GST is that while the former is charged multiple times, the latter is a one-time tax for consumers.

    Payment of VAT takes place in every step of the supply chain. On the other hand, end users only have to pay the GST. GST is uniform in all states, while different states have different VAT rates.

     After GST came into action, there was a discontinuation of VAT in Arunachal Pradesh .

    However, this is all about VAT in Arunachal Pradesh. Though VAT is no longer individually applicable, knowing all about it would help file tax returns.

    Frequently Asked Questions

    Is Arunachal a tax free state?

    No, people of Arunachal Pradesh have to pay tax on income earned from any source outside of the  state or area. They also have to pay VAT on goods even when sales tax was not applicable before the VAT laws came in.

    No, people of Arunachal Pradesh have to pay tax on income earned from any source outside of the  state or area. They also have to pay VAT on goods even when sales tax was not applicable before the VAT laws came in.

    What are the penalties levied on individuals failing to register for VAT?

    ₹ 1,000 is charged as penalties for individuals who fail to secure registration within the grace period.

    ₹ 1,000 is charged as penalties for individuals who fail to secure registration within the grace period.

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    Author: Team Digit

    Last updated: 20-05-2025

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