Value Added Tax (VAT)
State-Level Overview & Compliance Guide
VAT was India's state-levied indirect tax on goods sales prior to GST implementation on July 1, 2017. While most transactions now fall under GST, certain categories (notably alcohol and petroleum products) remain subject to state VAT and excise duties.
Why Partner with Leegal?
Legacy-liability assessments
Excise-VAT reconciliation
Transitional filings
Appeal management
Technology-driven monitoring
Detailed advisory services
Our one-word-pointer framework ensures clarity, while our detailed advisory and technology-driven monitoring eliminate oversights.
VAT Rates in Key States
*Approximate rate bands; actual rates vary by item and are subject to amendment.
Maharashtra
Tamil Nadu
Gujarat
Karnataka
West Bengal
Delhi
Core VAT Features
Uniformity
Consistent application across similar transactions
Transparency
Clear visibility of tax components
Neutrality
Non-discriminatory tax treatment
Auditability
Comprehensive audit trail maintenance
Creditability
Input tax credit mechanism
Compliance Pointers
Registration
Mandatory registration for businesses exceeding turnover thresholds as per state VAT laws.
Returns
Timely filing of periodic VAT returns with accurate transaction details and tax calculations.
Payment
Prompt payment of VAT liabilities within prescribed due dates to avoid interest and penalties.
Recordkeeping
Maintenance of proper books of accounts and supporting documents for statutory periods.
Penalties
Understanding penalty structures for non-compliance and implementing measures to avoid violations.
Documents Required for VAT Registration
Note: VAT registration is state-specific. Exact requirements may vary slightly by state government. Always consult the relevant State VAT Act or portal for the latest checklist.
1 PAN Card
PAN of the business entity (Proprietorship: proprietor's PAN; Company/LLP: entity's PAN).
2 Business Constitution Proof
- • Proprietorship: Declaration on letterhead
- • Partnership: Partnership Deed
- • Company/LLP: Certificate of Incorporation & MOA/AOA
3 Identity Proof
Proprietor/Partners/Directors: Aadhaar Card, Passport, Voter ID, or Driving Licence (any one).
4 Address Proof
Business Address:
- • Ownership: Property Tax Receipt / Sale Deed / Municipal Khata
- • Rented Premises: Rent Agreement + NOC from owner (if required by state)
5 Bank Account Details
Canceled cheque or bank statement of the current account held in the business name.
6 Digital Signature Certificate (DSC)
Class II/III DSC for partners or authorised signatories (mandatory in most states for online filing).
7 Letter of Authorization
Authorizing a designated person to sign returns and correspond with the VAT department.
8 Photograph
Passport-size photo of the proprietor/partners/directors.
9 Sales & Purchase Invoices
Sample invoices to evidence trading activity and turnover (if already trading).
10 Utility Bill
Recent electricity/water bill in the business name (some states accept this in lieu of municipal records).
State-Specific Add-Ons (Examples)
Maharashtra
Affidavit on stamp paper confirming commencement of business.
Tamil Nadu
GST Registration Certificate (if already registered under GST).
Karnataka
GAR‐7 Form (if trading in goods requiring check‐post clearance).