The Value Added Tax or VAT is essentially a levy or charge that had been implemented by the Central Government of India. Of lately, with the Modi Government coming into power, all direct taxes have been subsumed by the uniform tax regime.
The Commissioner of Taxes and Excise is the taxation authority for VAT in Tripura. The institution is maintained by the state government and levies several state taxes. It also levies and collects VAT from around the state. Dealers need to register with the department to be able to pay their VAT dues. The department also maintains a comprehensive web portal for various VAT and other taxes related processes.
Tripura VAT Rates
The State of Tripura levies VAT on goods manufactured in the state as well as on those imported from outside. The rates are decided on the basis of various Schedules that list out items and their respective VAT rates. There are overall 8 Schedules that define the levy of VAT on items in Tripura.
Schedule 1: This list includes various persons working for international public organizations which include ICRISAT, UNESCO, UNO, WHO and FAO.
Schedule 2-A: This sections includes 102 categories of items that are levied VAT at 5%. It includes non-manual and non-animal operated agricultural implements, intangible goods, acids, yarns other than cotton and silk, utensils, aluminium and alloys, crucibles, clay, ferrous and nonferrous metals and alloys, fibres and fibre waste, pipes, readymade garments, ship and other vessels, vegetable oil etc.
Schedule 2-B: This schedule contains 3 lists.
- The first list include 193 items that are levied VAT at the rate of 14.5%. Items such as abrasives, advertisement hoarding, air conditioners and purifiers, diapers, fitness equipment, bleaching powder, cables, fax machines, instant serve foods, kitchenware, lubricants, petrochemicals, rubber products etc.
- The second list under Schedule 2-B includes tobacco and related products that are levied VAT at 25%.
- The third list includes toys except for electronic toys which are levied VAT at 35%.
Schedule 2-C: This section levies VAT at 2% and includes gold, silver and other precious metals, articles of gold, silver and precious materials including jewellery and precious stones.
Schedule 2-C (i): This section charges VAT at 1.5% for LPG for domestic use.
Schedule 2-D: This list includes items that are exempt from VAT and taxable as per Government norms. Aviation gasoline and other types of aviation fuels, diesel, liquor, molasses, narcotics and petrol from this list.
Schedule 3: This is a list of exempted goods and includes items such as manually or animal operated agricultural implements, electrical energy, charcoal, coarse grains, firewood, aids and implements used by handicapped people, fresh and pasteurized milk, plants, flowers and saplings, national flag, unprocessed and unbranded salt and unprocessed leaves of tea, paddy, rice, wheat and pulse, kerosene from PDS etc.
Schedule 4: This schedule lists out the negative list of items of capital goods for input tax credit. It includes items like civil structure and immovable goods or properties, vehicles, office equipment, furniture, electrical fixtures, building material and capital goods purchased prior to VAT appointment in the state.
Schedule 5: This schedule doesn’t list out any items however it lists the things that should be included in tax invoices, credit notes and debit notes.
Schedule 6: This schedule lists 165 items that are used as industrial inputs and charged VAT at 4%. Examples are various ores and concentrates, acids, sulfides and several other chemicals and compounds as well as other industrial items.
Schedule 7: This schedule consist of a list of 30 items falling under the Information Technology products and are levied VAT at 4%. Items include electronic calculators, typewriters, IT software and media, printed circuits, resistors, uninterrupted power supply, computer systems and peripherals, and DC and Stepper motors, among others.
Schedule 8: This list also levies VAT at 4% and includes 4 categories of goods like raw jute, raw hides and skins, bamboo converted to sticks for agarbatti manufacture and rubber, latex and their specified types.
Tripura VAT Registration:
Dealers looking to register their businesses with VAT handling department in Tripura can log into the official web portal of tripura taxes.
- In the home page, click on e-registration link.
- Follow the directions and complete the form that will ask details such as business name, address, date of inception, PAN, email address etc.
- Submit the form along with all required documents and payment procedure.
- Data is checked by the approval authority and inspection report with recommendations is submitted by him.
- Department will generate your TIN number and RC after approval.
Alternatively, the process can also be completed offline by approaching the tax authority offices.
Tripura VAT Forms
There are a total of 42 forms related to VAT processes. Some of the major ones are:
- Form I: Registration form
- Form II: Certificate of registration
- Form VII: Register of goods transported into Tripura
- Form XL: Declaration with respect to manager, officers, or persons in charge.
- Form XXXVIII: Sales statement
- Form XIX: Daily collection register
- Form XVI: Appeal form
- Form XVIII: Challan for payment
- Form XXI: Refund form
- Form XI: Deduction certificate
- Form XXIX: Tax invoice
- Form XXXVII: purchase statement
These forms can be downloaded from Government of Tripura VAT website.
Tripura VAT Return e-filing and Payment
The VATSoft portal of the state government is to be used for e-filing of VAT returns in Tripura.
- Login to your account.
- Click on ‘Entry’ in the ‘Returns Entry’ category on the left.
- Select month and year you want to file VAT for.
- Fill up the details in the next forms that come up successively as you submit them.
- Click on Save Returns and go to ‘Payment Details’ just below ‘Entry’ in your profile’s home page.
- Select the payment period and add details as directed.
- Make e-payment or get challan and make the payment offline.
Frequently Asked Questions
What can I do with the VATSoft portal?
You can register, file returns, make payments, check CST, file for refunds, submit audit, purchase and sale reposts, way bill and check post and complete other important tax related procedures.
My item isn’t listed in any of the Schedules. Do I have to pay VAT?
Yes. In case your product isn’t listed, it will be included in the first list Schedule 2-B by default which levies VAT at 14.5%.
Where can I get the forms related to VAT?
You can download the forms from the VATSoft portal or acquire them from the departmental offices.
Do I need to pay VAT and CST charges separately?
Yes, payments for both types of taxes have to be made separately.