Madhya Pradesh VAT

Value Added Tax or VAT is nothing but a simple levy or charge brought along by the Central Government of India to be levied on the producers of goods, products, and materials in the country. VAT has now been subsumed by the uniform tax regime - GST.

Madhya Pradesh was among the pioneer states to adopt the VAT and the rules and regulations regarding value added tax was laid out in the Madhya Pradesh Value Added Tax Act of 2002. Since its inception there have been various amendments made to the act particularly in 2003, 2004, 2006, 2007 and 2008 with the last one being done in 2010. These amendments were made to bring under the umbrella of VAT, various commodities such as drugs, pharmaceuticals etc. The registration and filing of VAT is looked after by the commercial taxes department of Madhya Pradesh.

Madhya Pradesh VAT Rates

The goods that can have VAT levied against them are broadly classified into 4 categories with Schedule I being manually operated agricultural equipment and other vital commodities such as food used for animal husbandry be it poultry or fisheries, fresh fruits and vegetables and coarse grains barring wheat and rice. These commodities do not attract any VAT. Schedule II goods are precious metals and stones such as gold silver and diamonds along with edible oils and different types of flour that attracts a VAT of 1%. Schedule III consists of goods that are used as structures for example bridges and other items such as utensils. It also encompasses the automatic and non-manually operated agricultural equipment. These goods attract a VAT of 5%. Schedule IV goods are those goods that do not fall in the above segments and attract a VAT of 13.5%. Certain goods such as Cola products, plastic carry bags and cigarettes attract higher VAT ranging from 15% to 22.5%

VAT Registration of Dealers

Dealers based on the kind of goods sold will have to register for VAT as per the rules of the Madhya Pradesh VAT act of 2002. There have been several amendments to this act and now the VAT act of Madhya Pradesh has come to encompass a large section of dealers. Any dealer having a business in the state regardless of whether they reside in the state are required to register themselves for VAT when they are either in the industries segment or if the sale value of goods exceeds Rs 1 Lakh per annum. Dealers can even voluntarily register for this act if they do not fall under this criteria. Registration for VAT once applied for will be reviewed by the commissioner of commercial taxes and if the details provided are found satisfactory the commissioner will approve the application.

E filing of VAT Returns in Madhya Pradesh

The VAT returns need to be filed by the dealers on a periodic basis. Depending on the class the dealer falls in and the norm followed by the state, the filing of these returns can either be monthly before the 15th of each month if the dealer has had payable VAT exceeding Rs 10 lakhs, on the 20th of every month if the dealer has had payable VAT in the range of Rs 25,000 to Rs 10 lakhs and on the 25th of every month if the dealer has had payable VAT falling in any other category. Dealers are required to file VAT returns once a year on or before the 30th of April. These VAT returns can be filed electronically by downloading the required forms from the commercial Tax department of Madhya Pradesh website. Dealers have to log in, download the required templates and upload the filled in template onto the portal. The link to the website is as follows:

Madhya Pradesh VAT FAQ's

  1. What is the processing fee for registration for VAT?

    The registration application will have to be submitted and a fee of Rs 500 needs to be paid I order for the application to be processed

  2. What is the VAT on a commodity not listed in any schedule?

    If a particular commodity is not listed in either Schedules 1 to 3 then the VAT applicable on that commodity is 13.5%

  3. Can one make payment of VAT online?

    Yes. Just as how one can file the VAT return forms electronically, the commercial tax website of Madhya Pradesh offers online payment of taxes

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