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    VAT in Bihar: Rates, Eligibility, Registration Process & Fee

    vat in bihar
    Source: moneycrashers

    Value Added Tax or VAT in Bihar was introduced on April 1, in the year 2005. The main motto of this tax is to ease and simplify the process of collecting tax on the sale or purchase of goods in the state of Bihar. If you want to know more about VAT in Bihar, keep reading.

    Team Digit

    What Is Value Added Tax?

    A VAT is imposed on the sale of products and services, and producers of such items pay the tax to the Government. As far as the VAT in Bihar is concerned, the Bihar VAT Act came into effect in 2005. It contains provisions depending on which VAT will be imposed within Bihar.

    What Are the VAT Rates for Goods or Services in Bihar?

    VAT rates in Bihar are imposed under four categories. The categories, tax rates and commodities or services on which VAT is applicable are illustrated in a tabular format below:

    Schedules

    Applicable Goods or Services

    VAT Rates in Bihar

    Schedule 1

    Charcoal, agricultural products, milk products, coconut fibre, vegetables

    Exempted

    Schedule 2

    Precious metals like gemstones, diamond, gold, LPG, barley and flour/pulses/wheat sold by dealers with an annual turnover of over Rs.100 crores.

    1%

    Schedule 3

    Intangible goods, kitchen utensils made of precious metals/brass, machine-operated agricultural implements, candles, biofertilisers, coffee beans, tea, coal tar, dry fruits

    5%

    Schedule 4

    Natural gas, diesel, petrol, alcohol, including any country liquor, tobacco products except those used to make bidi, aviation turbine fuel

    20% to 50%

    Products that are not included in any schedule

    -

    12.5%

    Who Should Pay VAT in Bihar?

    Every dealer who is registered under the Bihar Finance Act, 1981 (Bihar Act 5 of 1981), as it stood before its repeal by section 94, shall be liable to pay tax under this Act on any purchase or sale made by him on or after the commencement of this Act.

    How to Register for VAT in Bihar Online?

    To register for Bihar VAT online, one needs to do the following steps.

    Step 1: Individuals must go to the website of Bihar Commercial Taxes Department and click on the new sign-up option.

    Step 2: A new screen will open where the dealer will need to fill in the required details for registering on the portal. One needs to provide details including PAN, email-id, password, registration effective date, etc.

    Step 3: The dealer needs to click on submit after entering the details. Upon submitting the details, the system will verify it and give a successfully registered message on the screen. This registration is a one-step requirement.

    The other details one needs to enter are the nature of business, number of branches, immovable properties owned by the business, bank account, and details of goods sold. The dealer has to log in with the password he/she has registered himself with.

    How to Pay VAT Registration Fee in Bihar Online?

    Individuals can pay their Bihar state VAT registration fee online with the help of any bank’s internet banking facility. Here are the steps they need to follow.

    Step 1: Individuals need to Log in to the website of Bihar Commercial Taxes Department with a valid ID and password for payment of Bihar VAT Tax

    Step 2: Dealers must make sure to enter the complete details and ensure filling mandatory details/fields.

    Step 3: Then, one needs to select their preferred bank and click on submit.

    Step 4: Dealers need to then confirm and submit for making payment.

    Step 5: They will have to choose between the corporate/retail option and select the preferred one.

    Step 6: Applicants will be directed to the selected bank’s internet Banking Channel

    Step 7: Users have to enter the bank's user-id and password to log in.

    Step 8: Applicants have to select the account from which their money will be debited.

    Step 9: Then they have to confirm payment by entering a valid user-id & transaction password.

    Step 10: Upon successful payment, a payment/transaction-id will be generated with the link for cyber receipt/ Counterfoil of Challan, which can be printed and kept for future reference. Dealers need to check immediately whether their amount has been debited or not. If debited, individuals need to wait for the next day and print duplicate cyber receipts.

    How to File a Return Against the VAT Payment in Bihar?

    Individuals can e-file their VAT returns using the Bihar Commercial Tax Department's official website. To do so, they must first register with their valid IDs. After completing the registration process, individuals need to select the appropriate link to file returns for a certain time period. It is necessary to select the appropriate form for filing VAT returns and fill out the necessary information.

    Individuals can also make payments through the same website. Users who have created an account can log in using their verified credentials and pay using net banking or a credit/debit card. A user must complete the appropriate challan and choose a payment method. Following payment, you will be given a Unique Reference Number.

    How Is VAT Different From GST in Bihar?

    Each product or commodity goes through various phases of processing, development, and creation before reaching the purchaser. Value Added Tax is an indirect tax that is added at each of these product movements. The last purchaser used to bear this tax which is added on all the stages.

    On the other hand, implementing the Goods and Service Tax (GST) aimed to eliminate other indirect taxes such as service charges, VAT, Excise Duty and Octroi. With GST, now individuals do not have to pay tax on tax.

    This is all about VAT in Bihar. Knowing its basic details will help dealers make an informed decision before they pay.

    Frequently Asked Questions

    What is the VAT levied on petrol in Bihar?

    The government of Bihar levied a VAT of ₹ 16.65 or 26% per litre of petrol (whichever is higher). Apart from that, the Bihar government also levies a 30% surcharge on VAT or sales tax.

    The government of Bihar levied a VAT of ₹ 16.65 or 26% per litre of petrol (whichever is higher). Apart from that, the Bihar government also levies a 30% surcharge on VAT or sales tax.

    What is the VAT levied on natural gas in Bihar?

    While the central government does not charge any excise duty on natural gas, Bihar's State Government levies 20 per cent VAT on natural gas.

    While the central government does not charge any excise duty on natural gas, Bihar's State Government levies 20 per cent VAT on natural gas.

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    Author: Team Digit

    Last updated: 20-05-2025

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