VAT in Uttarakhand: Rates, Eligibility, Registration Process & Return Filing

Each State Government is responsible for levying VAT on the sales of goods and services. Similarly, the Uttarakhand Government also imposes VAT based on the Uttarakhand Value Added Tax Act 2005. If you are interested in knowing about VAT in Uttarakhand, keep reading this blog as it focuses on the same.

What Is Value Added Tax?

Value Added Tax is an indirect tax imposed on the sale of goods and services. Consumers actually pay this tax when purchasing a commodity indirectly through producers of such a commodity to a Government.

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

Illustrated below are the VAT rates in Uttarakhand in a tabular format:

Schedules / Sections	Applicable Goods and Services	VAT Rates in Uttarakhand
Section IIA	Gold, platinum, precious metals, silver, pulses, textiles, and gold items	1%
Section IIB	Acids, patent, metal castings, copyright, all kinds of yarn, castor oil, utensils and bitumen	5%
Schedule IIC	Molasses	20%
Schedule IIC	Lottery tickets	32.5%
Schedule IIC	Stone ballasts crushed stone, kankar, stone dust	9%
Schedule III	All types of spirits	32.5%
Schedule III	Natural gas and aviation turbine fuel	20%

Who Should Pay VAT in Uttarakhand?

Every registered dealer is eligible to pay VAT in Uttarakhand, where he or she is engaged in inter-state trade, export, sale of any taxable commodities received or purchased from outside the state and consigning any taxable commodities for delivery outside Uttarakhand are liable to pay VAT.

Besides, dealers engaged in the execution of work contracts, transfer of rights to utilise goods or any other business and producers of commodities who generate an aggregate turnover above ₹ 5 lakhs in a particular assessment year can also pay VAT in Uttarakhand.

How to Register for VAT in Uttarakhand Online?

Follow the simple steps mentioned below to register for VAT in Uttarakhand online:

Step 1: Visit the official website of the Commercial Tax Department, Government of Uttarakhand. Download the application form of e-Registration, which is an MS Excel sheet.

Step 2: Fill in details in the e-Registration MS Excel file saved on your computer. Once you mention all information, select 'VALIDATE & GENERATE file to upload on CTD Website' and save this file.

Step 3: Upload this saved MS Excel sheet to the Commercial Tax Department's website.

Step 4: Take a printout by providing the application number (PAN).

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

Here is the step-wise guide to filing a return against VAT payment in Uttarakhand:

Step 1: Go to the same website of the Commercial Tax Department, Government of Uttarakhand. Select 'Offline Periodical Returns' and download the MS Excel sheet of Form III by clicking on 'Form III - Download Offline Form'.

Step 2: Fill in the necessary details such as TIN and return types for a specific assessment year and a quarter in Form III.

Step 3: Select 'Validate & Generate XML' in the MS Excel sheet to create an XML file. Save this file on your computer.

Step 4: Now, log in to the Commercial Tax Department's portal with relevant credentials to upload the saved XML file.

Step 5: Choose the 'Offline Periodical Returns' option, select 'Form III - Upload XML file' on the main menu, and finally upload the file.

Step 6: Choose assessment year and quarter and return type. Hit on the 'Browse' button, select the saved XML file, and choose the option 'Upload Form III' to submit it to the CTD server of Uttarakhand.

How Is VAT Different From GST In Uttarakhand?

VAT is a summary-based tax system that is levied on the sales of goods. On the other hand, GST or Goods and Service Tax is a transaction-based tax system imposed on the supply point, wherein supply includes commodities and services. Moreover, unlike VAT, GST rates are uniform in Uttarakhand and across all states in India.

The collection of VAT is the responsibility of the Uttarakhand Government, like other State Governments in India. Since the State Government collects VAT, it holds authority over the entire tax proceeds. As far as the GST is concerned, both State and Central GST are collected from all scales, and tax amounts get divided between two Governments.

With this, the article about 'VAT in Uttarakhand' comes to an end. Go through these details carefully to avoid any inconvenience while paying VAT to the State Government.

Frequently Asked Questions

✓ Which goods are exempted from VAT in Uttarakhand?

Listed below are a few items that are exempted from VAT in Uttarakhand:

Aquatic feed
De Oiled rice polish
Agricultural implements
Chhilka
Cattle fodder
Balanced poultry feed
Wheat bran

✓ What is the purpose of Form 1C in VAT in Uttarakhand?

Form 1C is used for the registration of a casual dealer.