About


VAT is a tax levied on sale of goods when any taxable commodities are sold to the consumer. It is an indirect form of tax which is paid to the government by customers but via seller of goods.

VAT is a multi-stage tax with the provision to allow 'Input tax credit (ITC)' on tax at an earlier stage, which can be set-off against the VAT liability on subsequent sale. Therefore, VAT is ultimately borne by the consumer. VAT is levied at every stage of sale/purchase of goods.

VAT Registration is mandatory in Gujarat for traders or manufacturers having a turnover of more than Rs.5 lakhs in a financial year. GVAT is collected and governed by the State Government of Gujarat.

Highlights


State Level Tax

VAT is regulated by the state Government. Therefore, each State has a different VAT Regulation. Rate of tax based on a product may differ from state to state.

Tax at Each Stage

The seller/dealer would collect the tax on the full price of the goods sold and shows separately in the sell invoice issued by him.

No Cascading Impact

VAT has no cascading impact even though the tax on the goods sold is collected at each stage. Because the net effect under VAT would be as follows: - the tax, previously paid on the sale of goods, would be fully adjusted.

No VAT on Exports

For goods exported from India, VAT is not applicable. Therefore, exporters of goods are not required to pay VAT. However, it is advisable for exporters to obtain VAT registration.

Documents Required


  • PARTNER/PROPRIETOR/DIRECTOR

    Copy of PAN Card , Passport size photograph , Copy of Aadhaar Card/ Voter identity card, Municipal Tax Bill of Resident of Authorised Person

  • LEGAL ENTITY

    PAN Card copy of firm/company, Copy of Property papers (If owned property), Copy of Rent agreement(If rented property), Landlord NOC (Format will be provided by us), Cancelled cheque of firm, Municipal Tax Bill of Business Premise, Electricity/ water bill

Process


  • 5
    GVAT Registration Certificate
    Congratulations
  • 4
    Submission of Documents to Department
    2 to 3 days
  • 3
    Online Application
    2 to 3 Days
  • 2
    Verification of Information
    2 to 3 Days
  • 1
    Collection of Information
    Start

You will get


  • Documents Drafting

  • Application Preparation

  • Application Filing

  • GVAT Registration Certificate

The basic requirement of charging tax under GVAT Act is that where any sale/ purchase of taxable goods is affected by a dealer in the course of business, in the State of Gujarat, VAT is payable under GVAT Act.

Interest will be imposed in case of payment of GVAT.

URD purchase means purchase from a dealer not registered under GVAT. Input credit of URD purchase is not eligible.

ITC means VAT & Additional Tax paid by the dealer on purchases, purchase tax & additional tax u/s. 9 and Entry Tax. 

In case of manufacturers, it is the tax paid on purchase of raw material for manufacturing taxable goods. The term raw material includes processing materials, consumable stores and packing material but does not include fuels for the purpose of generation of electricity.

Capital Goods means plant and machinery, (other than second hand plant and machinery), meant for use in manufacture of taxable goods and accounted as capital assets in the books of accounts.

ITC on capital goods can be availed subject to the following conditions

  • Capital goods should not be used for manufacture of Tax free Goods (Other than zero rated sales) or for Electrical Power Generation including Captive Use.
  • The capital goods, on which ITC has been claimed, should be used for a continuous period of 5 years, or else proportionate reduction in ITC is required to be made. [Sec. 11(8)].
  • ITC is not admissible on capital goods used for the execution of works contract — Sec.11(5)(mm).

Dealers, engaged in trading activity and a class of notified manufacturers, being Bakery, Bricks manufacturers, having total turnover not exceeding Rs. 75 lakhs in the preceding year

Are treated as small dealers and can opt to pay lump sum tax on taxable turnover as under,

  • Small Traders  @ 0.50% of Taxable Turnover i.e. excluding exempt turnover
  • Bakery @ 2.00% of Turnover of Sales
  • Bricks Manufacturer @ 2.00% of Turnover of Sales

No, you needn’t to be available in person, GVAT registration process is online. A scanned copy of documents can be sent to us via mail, and we will handle the rest.