Value Added Tax or VAT is essentially a charge or levy that producers of goods and products are required to pay to the Central Government of India. This provision, however, has been discontinued with the introduction of the uniform tax regime (GST).
VAT in Sikkim falls under the Commercial Taxes Division, which is in turn a part of Finance, Revenue and Expenditure Department of the Government of Sikkim. The division is responsible for levying and collection of VAT in the state, apart from other state taxes. The commercial taxes division also maintains an online portal for speedy and hassle-free processing of VAT applications related to registration or e-filing processes. The site also includes links for various forms that are related to VAT and important for dealers in the state.
Sikkim VAT Rates
The state of Sikkim levies VAT on goods manufactured in the state as well as on imported goods. The VAT rates in Sikkim are applicable as per the list of goods and respective slabs of tax as released by the commercial taxes department. Goods are divided into 5 major schedules and VAT levied accordingly.
Schedule 1: This section includes all the goods that are exempt from VAT in the state. It includes 85 categories of items such as specified agricultural implements, aids for handicapped persons, poultry, cattle and aquatic feed, books and journals, cotton and silk yarns, good grains, fresh fruits and vegetables, firewood, husks, clay idols and lamps, unprocessed salt, postal items, raw wool etc.
Schedule 2: This is a small list of 4 item categories that are levied VAT at 1%. It includes gold and silver ornaments, precious stones, bullions and platinum jewellery.
Schedule 3: This list includes 82 categories of goods that are levied VAT at 4%. It includes non-manual and non-animal driven agricultural implements, yarns other than silk and cotton, bricks, bamboo, bulk drugs, bicycles and tricycles, bearings, castings, crucibles, fertilizers, ferrous and nonferrous alloys, flour, atta and maida etc., pipes, processed meat and poultry, old cars, seeds, writing instruments, vegetable oil etc.
Schedule 4: This list is comprised of 195 items that are categorized under industrial inputs and information technology products. VAT is charged at 4% on the goods listed therein. Various ores, ethyl alcohol, animal fats and oils, different hydroxides, vegetable alkaloids and tanning extracts, silicon, electric circuits and resistors, optical fibre, computers and peripherals and several other items are included in this list.
Schedule 5: This list includes 178 categories of items that are levied at 12.5%. It includes items such as air conditioners and coolers and their appliances, air purifiers, adhesives, abrasives, ad hoardings, cables, bleaching powder, chinaware, cement, cosmetics, coal tars, electric and motor spare parts and accessories, electrical goods used in electricity cycles, fireworks, maize products, office machines, TV, toys, water filters and others.
Sikkim VAT Registration
You can register with the Commercial Taxes Division portal online. You need to enter details such as business name, nature, email address, branch address, PAN etc. On filling up the online form and providing username and password details as well as uploading your photo, you will need to submit the application which will then create your online profile in the tax portal.
Alternatively, you can also approach the offices of commercial taxes division to fill up the VAT registration form and submit details for manual registration.
Sikkim VAT Forms
A total of 24 forms are available with regards to VAT in Sikkim. Some of them are:
- Form 1: Application for new registration/Amendment of existing registration
- Form 3: Declaration for name of manager or person in charge of business
- Form 8: Quarterly VAT return
- Form 9: Annual VAT return
- Form 10: TDS certificate under rule 38(3)
- Form 11: TDS certificate under rule 39(2)
- Form 22: Daily sales register to be maintained
- Form 23: Daily purchase register
- Form 24: Daily VAT register
- Form 30: Appeal/revision form
- Form 32: Audit report
These forms can be downloaded from Government of Sikkim website Downloads section.
Sikkim VAT Return e-filing and Payment
You can opt for efiling of VAT returns in Sikkim over the internet. Once you have registered with the Commercial Taxes Division portal, you can go to your profile and make VAT payments in a few simple steps. You need to select the items under the VAT heading for which you owe taxes to the state. On completing these details, you can choose the online or offline payment mode as per your discretion. Epayment is a simple way of paying VAT charges to the state government. Alternatively, you can approach the relevant tax collection offices and complete the payment process offline.
Frequently Asked Questions:
How do I pay my VAT returns?
Once the amount has been decided, you can pay the dues either online through the web portal or offline through challan.
Do I have to submit PAN details for VAT registration?
Yes, PAN details are necessary for VAT registration.
What can I do with the e-returns portal?
You can file monthly or quarterly returns and generate acknowledgement number on returns submissions without the need to visit offices.
What if my item doesn’t fall into any of the Schedules?
In case your item hasn’t been listed, it will automatically be included into Schedule 5. All items not specified in any of the other Schedules are included in this schedule by default and levied VAT at 12.5%.