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

The introduction of VAT took place on 1st April 2005 in India. VAT application takes place at different stages during the production and sales of products and services. The structure and rates of VAT in Chhattisgarh will vary from other states.

VAT was introduced based on the Report of the Indirect Taxation Enquiry Committee. The main motive for introducing VAT was to assure a reformed taxation system by simplifying the procedure. The introduction of VAT helped in reducing issues that persisted while implementing gross turnover and sales tax.

What Is Value Added Tax?

Value Added Tax (VAT) is a tax paid by the producer of products and services to the government on the sale of the same. VAT was imposed as a replacement for the general sales tax. A few states refused to imply it immediately after the introduction. The first state to incorporate VAT was Haryana, and the last state was Uttar Pradesh.

VAT is collected from the beginning of the manufacturing process to the last stage of reaching the retailer. The amount to be collected is based on Input tax and Output tax.

A person or a unit liable to pay VAT will report monthly sales to the State VAT department. Tax officials verify and perform a VAT audit to determine the payable amount. The dealer then pays the decided amount on a specific date of the month.

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

Chhattisgarh VAT rules are unique to the state. Below you will find all the information regarding the Schedules and how much is charged under each sub-parts -

Schedules	Applicable Goods or Services	VAT Rates in Chhattisgarh
Schedule 1	Books, bread, carts driven by animals, fresh milk, fresh plants, garlic, ginger, human blood and more.	Exempted
Schedule II (Part I)	Items of gold and silver, including coins, platinum ornaments and precious metals and precious stones.	1%
Schedule II (Part II)	Acid oil, fatty acid, agricultural implements, jams, jellies, all types of yarn, all kinds of utensils, bamboo, bearings, bicycles, and much more.	5%
Schedule II (Part IV)	Any other items not included in Schedule I and in parts I, II and III of this Schedule are included here.	14%
Schedule II (Part III)	Diesel, Petrol, Aviation turbine fuel, Natural Gas, Tendu Leaves.	25%

Who Should Pay VAT in Chhattisgarh?

Registration for VAT in Chhattisgarh is compulsory for people who run a business with a turnover of Rs. 10 lakh in a year.

How to Register for VAT in Chhattisgarh Online?

The online process to register for VAT in Chhattisgarh is quite simple. The individual needs to fill out Form 10.

Step 1: Visit the official website of the Commercial Tax Department of Chhattisgarh and select Login/New Registration under the dealer corner.

Step 2: Select VAT and Entry Tax from the given checkboxes.

Step 3: To generate TIN, enter PAN number. Press check to know the validity.

Step 4: Fill up ‘Applicant’s Minimal Entry Form’ and submit it.

How to Pay for VAT Registration Fee in Chhattisgarh Online?

The VAT registration charges are equivalent to 4% of market value of the property in Chhattisgarh. To Pay Registration fee online, one needs to fill up an online challan, providing all the required information. The process goes as follows -

Step 1: Visit the official portal of Government of Chhattisgarh.

Step 2: Go to e-challan

Step 3: Enter user code, passcode and captcha

Step 4: Tap on sign in

Step 5: Now that you have reached the tax payment page, make payment, and print out the challan.

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

The procedure of e-filing the return can be carried out through the official website of the Commercial Tax Department. To file a Tax return, the following steps are to be followed-

Step 1: Individuals need to register by providing all of their credentials.

Step 2: After successful registration, the user will receive ID and password which will be mandatory for further correspondence.

Commercial Tax Department has also launched an official service for Chhattisgarh VAT return.

How Is VAT Different From GST in Chhattisgarh?

After the implementation of GST, indirect taxes like VAT, excise duty and service tax were removed. There are multiple differences between GST and VAT. Below you'll find a list of differences between GST and VAT-

GST payment depends on goods and services. On the other hand, VAT payment depends on the sale of goods.
GST applies to the supply of goods and services. VAT is only applicable at the time of sale of goods.
For GST, tax rates are uniform across India. In the case of VAT, laws and rates are different for each state.
The state and the central government equally share the collected GST. VAT, however, stays under the state government.
Filing of GST takes place for the preceding month on 20th of the next month. Filings of VAT returns take place on the 10th, 15th and 20th of the next month for preceding month.
Input tax credit benefit is available for GST but not for VAT.
The set of compliances is similar in the case of GST. For VAT, the movement of goods between states differs from one state to another.
Central govt. collects GST and the seller’s state collects VAT.

Introduction of GST has successfully solved the cascading issues that were present earlier in the taxation system. Unlike before, when tax was deducted at every stage of production, now, consumers have to pay taxes only for the end product.

This is all about VAT in Chhattisgarh. Knowing the basic details is essential for an individual to avoid any hassles while paying it to the relevant authority.

Frequently Asked Questions

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Who imposes and collects VAT in Chhattisgarh?

The Department of Commercial Taxes of Chhattisgarh is responsible for collecting VAT in Chhattisgarh.

Is VAT applicable on all products?

VAT is not applicable on all products. There are many products that are under the exempted list. Which means those products are not taxed.