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.

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.

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

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.

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.

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.

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.