VAT in Rajasthan: Rates, Eligibility, Registration Process & Payment

Value Added Tax or VAT in Rajasthan works as per the provisions mentioned in the Rajasthan Value Added Tax Act 2003. VAT rates in the state are levied on imported commodities and other items manufactured here. This blog deals with such VAT rates and other essential information. So keep reading to know about them.

Before moving ahead to know about the prevailing VAT rates in Rajasthan, let's understand what a VAT denotes.

Value Added Tax is an indirect tax imposed on the sales of commodities and services. This implies that customers are paying these taxes levied on goods while purchasing the same but not directly but indirectly through the producers of such goods to the Government.

Dealers who are engaged in importing goods and manufacturing items that generate a turnover of above ₹ 2 lakhs in a year are eligible to register to pay VAT to the State Government. Moreover, dealers whose annual turnover is above ₹ 10 lakhs also qualify for registration and VAT payment in Rajasthan. Besides casual traders, any individuals engaged in temporary business for more than 120 days in a year can also register for VAT.

VAT applies to every business in Rajasthan that manufactures goods, generating an annual turnover of at least ₹ 2 lakhs. Other dealers will also have to pay VAT if they generate an annual turnover of more than ₹ 10 lakhs.

Follow this simple step-wise guide to register for VAT in Rajasthan online:

Step 1: Visit the official portal of the Commercial Taxes Department, Government of Rajasthan.

Click on 'e-Registration' available under 'e-Services'.

Step 2: Choose a type of registration.

Step 3: Choose a new form or continue with previously saved VAT form 01. Enter the required details correctly, which include the dealer's name, address, PAN card details, contact number, and business type, to mention a few.

Step 4: Once you select 'Save and Next', a transaction ID will appear on the screen. Note it down for future reference.

Step 5: After successfully submitting the online registration form, a form VAT 01 and an acknowledgement receipt will be generated.

Step 6: Take a printout of this form and receipt. Now, a proprietor, director, leading member of HUF or business partner, whoever is applicable, needs to sign these documents. With this, the registration process for VAT in Rajasthan is completed.

Note: You must fill in the VAT 64 and get it signed by your business partner, director, proprietor, or HUF and two guarantors. Finally, a notary public must certify this document. Besides these, you must fill in VAT 01B. This is an affidavit for obtaining e-registration for the proprietor, director, leading member of the HUF, or member of the Association of Persons.

Moreover, you also need to fill in a form VAT 02, which is applicable for appointing a business manager.

Go through the following steps to pay VAT online in Rajasthan:

Step 1: Log in to the website of e-GRAS. Enter the required information correctly to prepare an e-Challan.

Step 2: A Government Reference Number will be generated once you make a transaction. You can choose to make the payment online or offline.

Step 3: Once you select the online payment mode, you need to choose a bank from which you wish to complete the transaction.

Step 4: Once you select a bank, you shall be redirected to the respective bank's website.

Step 5:  Log in to the bank's website and pay. After the payment, a Bank Challan Identification Number will be generated. After making the payment successfully, you can print out the e-bank challan and keep it with yourself carefully for future reference.

Here are the steps mentioned below to file a return against VAT in Rajasthan online:

Step 1: Log in to the official portal of the Commercial Taxes Department using TIN. However, if you still need to register to this portal, sign up by entering essential registration details and TIN. After successful registration, sign in with relevant credentials.

Step 2: Download JRE or Java Runtime Environment for the functioning of the digital signature. Once downloaded, install the component on your computer.

Step 3: Visit the home page of e-services and map your digital signature certificate by utilising the icon given.

Step 4: Select the link of VAT e-Return/CST e-Return available on the home page for filing e-returns before the fiscal year of 2011-12. For filing returns online for the fiscal year starting from 2011-12, choose the e-Returns (VAT) link available under the e-services option. Since CST and VAT have been combined, you only need to file a single composite return.

Step 5: Download the VAT's pre-defined templates (annual – VAT-11 and VAT-10A, quarterly – VAT-10). To file e-returns, you must proceed with these prescribed templates.

Step 6: Sign each document, upload and submit the duly signed documents. If you notice any document mistakes, rectify them and upload them again.

Step 7: Complete the steps mentioned above for each document for filing quarterly returns for VAT (such as VAT – 08 and VAT – 07).

Step 8: Once you upload documents for VAT for the financial year before 2011-12, you will receive an acknowledgement receipt. Take a printout of the receipt. At the same time, if you have uploaded files for the fiscal year 2011-12 onwards, you will receive a combined acknowledgement slip for composite returns for CST and VAT. In this case, you can also take a printout of this receipt.

GST, or Goods and Service Tax, replaced the VAT in Rajasthan and other states in India. The primary difference between the two is that the former is imposed on every good and service, while the latter is levied on selling goods and services. The State Government exercises authority over the VAT collection. In the case of GST, both State and Central Governments collect GST, and the amount gets divided among the governments. Moreover, unlike VAT, GST rates are uniform across every state in India.