Gujarat Value Added Tax

• Team Antworks

VAT is applicable on all goods and products sold in the state, and the rates will depend on the products being sold and purchased. Any trader or dealer that has a sale or purchase turnover of a minimum of Rs. 5 lakhs is liable to pay VAT as per the VAT Act. There are different schedules for products that can be taxed and that are exempt from tax, and each of these has different rates.

Schedule 1: Schedule 1 includes those goods that are exempt from paying taxes, these products can be Agate stones and articles made from them, agricultural implements like huller or opener, thrashers for agricultural uses. The exemption can also be extended to aids of any kind used for people with disabilities, such as Braille equipment, hearing aids, speech trainers, wheelchairs, crutches, orthopedic footwear, heart valves, an intra-ocular lens for cataract operations, etc.

Schedule 2: The goods or products under the schedule that can be taxed are:

Particulars	Rate of Taxes
Agricultural implement which do not fall under schedule 1	4 paise for every 1 rupee
Bamboo or articles made thereof	4 paise for every 1 rupee
Bicycles, tricycles, rickshaws, pedal rickshaws and the accessories thereof	4 paise for every 1 rupee
Betel nut and areca nuts	4 paise for every 1 rupee
Biscuits (unbranded)	4 paise for every 1 rupee
Bolts, nuts, screws, and fasteners	4 paise for every 1 rupee
Brass metal parts	4 paise for every 1 rupee
Bricks, roofing tiles	4 paise for every 1 rupee
Trunks, buckets, drums,	4 paise for every 1 rupee
Candles made of wax	4 paise for every 1 rupee
Gold, Silver, other precious metals; jewelry made of these precious metals; precious and semi-precious stones, pearls of any type	1 paise for every 1 rupee

The other products covered as per this schedule will be drugs and medication, medical equipment, edible oils, all types of fabric, herbs and barks, dyes, hides and skins of animals, honey, etc. There are many products under this schedule with over 200 products being mentioned.

Schedule 3: The sale of these products mentioned below are subject to paying VAT.

Particulars	Rate of Tax
High speed diesel oil	24 paise for every 1 rupee
Gasoline for Aviation	26 paise for every 1 rupee
Gasoline for Aviation (duty paid)	13 paise for every 1 rupee
Aviation turbine fuel (bonded)	38 paise for every 1 rupee
Aviation turbine fuel (duty paid)	13 paise for every 1 rupee
Any motor spirit of other kinds	26 paise for every 1 rupee

Gujarat VAT Registration:

Any individual who is in the business of trading of goods and products which has an annual turnover of Rs. 5 lakhs and taxable turnover that exceeds Rs. 10, 000 in one financial year is liable to pay VAT compulsorily as per the VAT Act. They will need to register their business and the form they can use for such a registration will be Form 101. The form along with the supporting documents should be provided to the registration authority.

The documents (2 copies) that will have to be attested by a Sales-tax Practitioner and submitted along with the form, are mentioned below:

1. 2 passport sized photographs
   • If the business is held by an individual then the proprietor’s photographs will be required
   • If it’s a HUF, the photograph of the Karta will be required
   • If it’s a partnership firm, photographs of all partners will be needed
   • If it’s a private limited company or a limited company, photographs of all board of directors will be required
2. Proof of ownership of place of business
3. Copy of passport of the owner of the business
4. Copy of the election card of the owner
5. Copy of registration certificate issued by custom and central excise authority
6. Copy of last electricity bill of the place of business
7. Copy of last bill of Property Tax of the place of business

After providing all the documents, along with the filled up form the authorities will verify this information and then will provide the certificate for VAT.

Form Required for Gujarat VAT:

Form required to be filled for the registration for VAT will be:

1. Form No. 101: This is the form that can be used to register to pay VAT.
2. Form No. 101A: This form is used to declare any other places of business, branches or godown maintained in the State of Gujarat.
3. Form No. 101-B: This is used to declare places of business, branches or godowns that are located outside the state and will need to be accompanied by their TIN numbers.
4. Form No. 101C: This is the form that will inform the authority about the details of the person who is authorized to sign invoices, delivery challans, declarations, etc. A separate form will be needed for each person who has these privileges.
5. From No. 101D: This is a form that is used to declare the people who are ultimately responsible for the business. Such people can include directors.
6. Form No. 101E: If the company is a manufacturer then this is the form that will be used to inform the authorities about the capacity.
7. Form No. 106: This is the form that can be used to provide information about managers within a business.