VAT in Jharkhand: Rates, Eligibility, & Registration Process

The main motive for introducing VAT was to eliminate double taxation and cascading effect of the sales tax structure. Levying tax at every stage of production ensures few loopholes and better compliance. This blog focuses on VAT in Jharkhand and other important details you need to know.

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What Is Value Added Tax?

Value Added Tax (VAT) is a tax levied on goods and services. It is paid to the government by the producers at each stage in the supply chain. It was introduced on 1st April 2005. Each state has its VAT laws, rates and a list of taxable goods. Jharkhand VAT Act came into effect in 2003 and comes with certain VAT rates on the purchase or sale of goods.

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

Schedules	Applicable Goods or Services	VAT Rates in Jharkhand
Schedule I	Atta, Bread, Charcoal, Curd, Fresh Vegetables, Potato, Onion, Rice and others.	Exempted
Schedule II Part A	Jewellery made of bullion or species or both, gold coated or gold covered jewellery including ornaments made of silver and gold.	1%
Schedule II Part B	Agarbatti or Incense sticks, processed fruits and vegetables, bricks, tiles, aluminium and stainless steel utensils, etc.	5%
Schedule II Part C	Knitting wool, stainless steel sheets, oilseeds, jute, pulses etc.	5%
Schedule II Part D	All goods except those specified in Schedule I, Part A,B, C and E of Schedule II	14%
Schedule II Part E	High Speed Diesel Oil, Narcotics, Petrol, Liquors, Methylated & Rectified Spirit etc.	20% and above
Schedule II Part F	Spare parts of all varieties of motor vehicles including two and three wheelers	10%

Who Should Pay VAT in Jharkhand?

Jharkhand VAT registration is applicable for the following business or people:

If total turnover in the last year and previous to the appointed year is above ₹ 5 lakhs and the taxable turnover is above ₹ 10 Lakhs in a year
Registered according to the previous law or under the Central Act terms as on the appointed day
If taxable and total turnover in any year has been above the stated turnover

How to Register for VAT in Jharkhand Online?

Dealers engaged in the trade of goods and services are covered under VAT and have to register before the commencement of any such trade. Follow the steps:

Step 1: Visit the official website of Department of Commercial Taxes, Government of Jharkhand and fill in the VAT registration form (form VAT- I)

Step 2: Give personal details like name, date of birth, amount paid and the nature of business.

Step 3: Regarding the business, individuals need to provide details like the composition of the business (partners, directors etc.), PAN details, account details, address, turnover and TIN.

The relevant authorities will then pursue the form. If all the criteria are fulfilled, a registration certificate will be issued.

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

According to the Jharkhand VAT Act, dealers need to file VAT returns monthly, quarterly or on six monthly basis. Individuals can file their VAT returns in Jharkhand online by following the below steps:

Step 1: Visit the official website of the Jharkhand Government Department of Commercial Taxes and register yourself.

Step 2: After registering yourself, visit the link to file returns for a particular period.

Step 3: Download the VAT returns form and fill it out before submitting it.

Individuals who have VAT registration should fill the particulars in VAT returns and never fail to pay the tax due.

What Are the Forms Used for VAT in Jharkhand?

Forms used in the filing of VAT returns in Jharkhand include:

JVAT100: Used for registration of VAT
JVAT 102: Application for registration of start up business before making any taxable sales
JVAT 103: Form for Registration as a registered retailer to pay the Composition Tax or Presumptive Tax under section 22/58
JVAT 124: Self- assessment form
JVAT 200: Quarterly return for VAT
JVAT 201: Return on cancelling VAT registration
JVAT 203: Return for the casual traders
JVAT 204: Form for registered dealers to claim Annual VAT return
JVAT 205: Challan under Jharkhand VAT rules, 2006
JVAT 206: Form for VAT refund
JVAT 207: Application to avail provisional refund
JVAT 208: Application to avail a refund for others
JVAT 211: Return for dealer who is liable to pay Presumptive and Composition Tax
JVAT 212: Annual return for a dealer who is liable to pay Presumptive and Composition Tax

You can download Jharkhand vat forms from the official website.

How Is VAT Different From GST in Jharkhand?

VAT is an indirect value-added tax levied on goods and services whenever it adds value to the supply chain. The consumer pays the VAT amount based on the product cost minus previous taxable costs of products.

VAT replaced sales tax and was introduced to make a single integrated market. It was implemented in all states of India.

Goods and Services Tax (GST) is an indirect tax that has replaced many taxes like VAT in Jharkhand, excise duty, services tax etc. The GST Act was introduced on 1st July 2017. GST is a multi-stage, comprehensive indirect tax levied on the supply of goods and services. Know every small detail to make an informed decision.

Frequently Asked Questions

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What is JVAT 200?

The JVAT 200 is a form used by the dealers to file a VAT return in Jharkhand on a quarterly basis.

How is VAT different from Sales Tax in Jharkhand?

The VAT and sales tax have their own differences as they are assessed on distinct production processes. Sales tax is paid by consumers, while VAT is paid by retailers, manufacturers and wholesalers. Consumers ultimately do not recover the VAT they pay, as this money goes to help fund government programs.