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    VAT in Nagaland: Rates, Eligibility & Registration Process

    vat in nagaland

    Direct and indirect taxes are important sources of revenue for the Government of India. Value Added Tax or VAT is an indirect tax. The government has levied this particular tax on goods and services.

    Before a consumer purchases a product or service, it undergoes various stages of production or distribution. When it comes to VAT, first, the value added at each stage is identified, and then the authorities impose the Value Added Tax.

    Every state in India has separate VAT laws. This blog focuses on VAT in Nagaland and the associated crucial details.

    Team Digit

    What is Value Added Tax?

    VAT is the short form of Value Added Tax. The Government of India introduced VAT on 1st April 2005. The main purpose behind its introduction was to remove double taxation and cascading effect from the sales structure that was prevalent in those days.

    While purchasing the good or service, the buyer has to pay the entire VAT. Purchasers at previous stages of production receive reimbursements of the amount that they have paid as tax.

    Value Added Tax is also referred to as Consumption Tax.

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

    The table below provides the details of VAT rates in Nagaland and the list of things upon which it is applicable:

    Schedules

    Applicable Goods and Services

    VAT Rates in Nagaland

    Schedule I

    Agricultural products, milk products, coconut fibre, charcoal, vegetables, artificial limb, handloom fabrics, books

    VAT Exempted

    Schedule II

    Non-judicial stamps sold by Government treasuries, rupee note, cheques, vaccines, khadi garments, indigeneous musical instruments, postal items, envelopes and postcards sold by Govt.

    VAT Exempted

    Schedule III

    Bullions, precious metals like gold, silver, gemstones, CSD (Canteen Sales Department) goods

    1%

    Schedule IV

    Intangible goods, machine-operated agricultural implements, bamboo, spare parts of motor vehicles, kitchen utensils of brass and precious metals, candles, biofertilizers, coffee beans, tea, dry fruits, coal tar etc

    5%

    Schedule V

    Electric domestic and commercial appliances, hospital instruments, instant milk products, preserved food, hydro-dynamic and steam power, motor vehicles, machinery that run on electricity

    14.5%

    Schedule VI

    Alcohol and lottery tickets

    20%

    Schedule VII

    Work contracts without deduction

    5%

    Schedule VII

    Work contracts with deductions owing to labour and service charge subject to 65% of the total value of the contract

    14.5%

    Who Should Pay VAT in Nagaland?

    Dealers or businessmen registered under the Sales Tax Act 1956, whose business turnover exceeds the turnover limit as specified by Government of Nagaland are liable to pay VAT.

    Given below are the details of turnover limits:

    • If it’s a casual or non-resident dealer – Rs. 10,000
    • If it’s a manufacturer or importer – Rs. 1,00,000
    • If it’s a businessman not falling in any of the above categories – Rs. 5,00,000

    How to Register for VAT in Nagaland Online?

    Every dealer engaged in trading goods or services upon which VAT is levied must opt for VAT registration mandatorily in Nagaland.

    Given below are steps to register for VAT online in Nagaland:

    Step 1: Visit the official website of the Department of Taxes in Nagaland

    Step 2: Choose ‘e-registration link’ and click on ‘e-registration for VAT’

    Step 3: Provide required details like the type of registration, office name, applicant dealer’s name, trading name, status/constitution of the business, principal place of business, PAN, email ID, and mobile number. Click on the ‘next’ button

    Step 4: Fill up the fields that require residential and permanent addresses, date of liability, nature of business, commodity name, estimated turnover etc. Click the ‘next’ button

    Step 5: Provide the requisite details related to ‘Registration number under Central Excise and Tariff Act’, ‘Amount of Sale during last quarter/year’ etc. Click the ‘next’ button to proceed

    Step 6: Enter your bank details like name, branch, account number, type of account etc. and click on ‘next’

    Step 7: In case of an additional business place, provide the requisite branch details. Click ‘next’ to proceed

    Step 8: If applicable, provide business partner details and click on ‘next’ button

    Step 9: Scan and upload requisite documents like Photo, PAN, Driving Licence etc. Click ‘next’ and finally press the ‘submit’ button.

    After a dealer successfully submits the e-registration form for VAT, he/she will receive an acknowledgement number. The dealer can use this number to track the registration process in the future.

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

    Now, a dealer can file a VAT return online, as per his comfort and convenience.

    Given below are the details of online filing of VAT returns in Nagaland:

    Step 1: Visit the official portal of the Directorate of Commercial Taxes in Nagaland

    Step 2: Download Form 14D. The pdf version of the form would be available inside a zipped file.

    Step 3: Fill up the form accurately. Your VAT receipts would contain the requisite information

    Step 4: After filling up Form 14D, convert the pdf version into an XML file. Not that only Form 14D has to be in XML format and not the attached annexures

    Step 5: In case e-filing system detects any error, you need to correct the mistakes and resubmit the form

    Step 6: After you successfully file a VAT return, you will receive an acknowledgement receipt which acts as a proof that you have completed the process of filing VAT returns

    How is VAT Different from GST in Nagaland?

    Value Added Tax was an indirect tax that was levied by state governments. The Government of India introduced the Goods and Services Tax (GST) on 1ST July 2017 and replaced the VAT.

    Some differences between GST and VAT are that in case of the former, one has to pay it at the end stage of a commodity. On the other hand, the latter is imposed on all production stages of goods and services. .Moreover, VAT rates vary across states, unlike GST rates, which are uniform in every state of India.

    This blog has enumerated every crucial detail related to VAT in Nagaland. It would help in a hassle-free process of payment of applicable tax to the concerned authority.

    Frequently Asked Questions

    Will a dealer be able to apply for a duplicate VAT registration certificate?

    If a dealer has lost his/her VAT registration certificate, the concerned authority of Nagaland can issue a duplicate certificate of VAT registration. Further, One can apply for the same in case of defacement or destruction. But he/she needs to provide adequate evidence  of his or her loss.

    If a dealer has lost his/her VAT registration certificate, the concerned authority of Nagaland can issue a duplicate certificate of VAT registration. Further, One can apply for the same in case of defacement or destruction. But he/she needs to provide adequate evidence  of his or her loss.

    What are the documents required for VAT registration in Nagaland?

    The required documents for VAT registration are Proof of applicant’s identity in case of a Limited Liability Company, Copy of Memorandum, and Copy of Article of Association.

    The required documents for VAT registration are Proof of applicant’s identity in case of a Limited Liability Company, Copy of Memorandum, and Copy of Article of Association.

    How long does it take to file a VAT return in Nagaland online?

    Entire process of online filing of VAT returns takes around 15 minutes. However, it also depends on the number of transactions one needs to file.

    Entire process of online filing of VAT returns takes around 15 minutes. However, it also depends on the number of transactions one needs to file.

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    Last updated: 20-05-2025

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