The Rajasthan Value Added Tax (VAT) functions according to the provisions of the Rajasthan Value Added Tax Act. This provision however has been discontinued with the implementation of the uniform tax regime (Goods and Services Tax) in the country.
VAT in Rajasthan is levied as per the sections of the Rajasthan Value Added Tax Act, 2003. VAT is levied on the type of goods and in some cases the quantity of goods. Fixed percentage of the overall sales figure is levied as VAT on each product, with a number of goods also being exempt from this tax. Rajasthan has a well-established portal for online taxes that allows you to register, download forms and make payments related to VAT online.
Rajasthan VAT Rates
Rajasthan VAT rates are levied on goods imported or manufactured in the state. Rates range from 0.25% to 65%, though most of the products are charged VAT between 0.25% and 15%, with higher VAT rates applicable on products such as cigarettes, pan masala etc.
VAT in Rajasthan is charged to a dealer:
- Who imports goods
- Who manufactures goods with annual turnover not less than Rs.2 lakhs
- Whose annual turnover is more than Rs.10 lakhs
There are 6 Schedules of the Rajasthan Value Added Tax Act, 2003 that deal with VAT rates (applicable from 1st April 2006, as of December 2015).
Schedule 1: This deals with goods exempt from VAT in the state. Specified agricultural implements, aids for handicapped persons, specific animals’ feeds, books, coarse grains, handlooms, fresh fruits and vegetables, milk and dairy products and several other products fall under this schedule. There are a total of 58 categories of goods under this section.
Schedule 2: This deals with exemptions provided to persons from institutions such as the United Nations, diplomatic missions and aviation turbine fuel to HUB establishing airline in the state (for 1 year).
Schedule 3: This is a small list of goods taxed at 1% which includes bullion; gold, silver and platinum ornaments; and precious and semi-precious stones and gems, pearls, agate and diamond.
Schedule 4: This list contains 152 categories of products that are charged VAT at 4%. It includes items like patents, licenses, metal castings, utensils, bricks, non-motor two and three wheelers, fertilizers, medicines, fibres, industrial cables, grains, specified IT products and over 219 industrial inputs, among others.
Schedule 5: This schedule levies VAT at 12.5% and is applicable on all goods that are not covered in any of the other sections.
Schedule 6: This section levies VAT at 20% on foreign liquor, diesel oil and molasses; 28% on aviation spirit and petrol, and 50% on bhang and opium.
Rajasthan VAT Registration
The VAT registration process can be completed online through a few simple steps online. You may also approach the tax offices for the same.
- Click on the Signup button on the home page
- Enter details including PAN, date of registration of business, firm name, place, business constitution, email address and password, accept t&c and click submit to get registered.
- You will be redirected to a new screen with a notification that you have successfully subscribed.
Rajasthan VAT Forms
There are a total of 71 different forms for various VAT related issues and procedures. Major forms include:
- Form VAT 01 – Registration application
- Form VAT 02 – Declaration of business manager
- Form VAT 03 – Registration certificate
- Form VAT 06 – Issuance of branch certificate
- Form VAT 07 – Statement of purchases
- Form VAT 08 – Sales register
- Form VAT 10 – Quarterly return
- Form VAT 11 – Annual return
- Form VAT 23 – Refund order
- Form VAT 26 – Certificate of chartered accountant
- Form VAT 37 – Challan form
- Form VAT 42 – Details of tax deduction and deposits
- Form VAT 56 – Application for settlement
- Form VAT 67 – Tax clearance certificate
These forms can be downloaded from Government of Rajasthan website.
Rajasthan VAT Return E-Filing and Payment
- Login to the portal
- Set up your profile with the Profile tax and include all types of taxes under the VAT head.
- Go to home page again and select the profile you just made.
- Fill details as required.
- Click submit.
- Make payment online or through offline modes.
FAQ's on Rajasthan VAT
How effective is the online portal for VAT?
The online portal is quite comprehensive and allows you to register for VAT through a few simple steps. You can also download various forms related to VAT and file returns online. Payments against VAT liabilities can be made online.
Do I need to submit PAN details for VAT registration?
Yes, PAN details have to be submitted for VAT registration.
Who oversees VAT in Rajasthan?
The Commercial Taxes Department of Rajasthan is tasked with all VAT related issues.
What are the penalties of tax avoidance?
In case of tax avoidance, you have to pay the original tax amount plus 2 times the amount of tax evaded or avoided.