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State VAT Filing for Petroleum, Alcohol & Tobacco Businesses
Lawfinity ensures smooth VAT compliance in all applicable states post-GST.
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Introduction and Its Compliance
Before GST, indirect tax known as VAT (Value Added Tax) was charged by the state governments on sale of goods in India. While GST has replaced VAT for all other goods except alcohol, petroleum and tobacco that are yet to be shifted in the new tax regime. Traders in these articles are required to register under the VAT registration and are to file returns under the VAT Act of the respective States. VAT returns guarantee correct calculation and storage of taxes. For business subject to file VAT returns under the laws of the state, Lawfinity provides professional help in VAT registration, return filing and VAT compliance through timely, accurate and complete compliance.
Why It Is Needed
Even after GST, still VAT is levied on some items in some states. If you are selling such goods then it is must to file your VAT returns for the local taxation. It helps in preventing taxes from being mis-determined by the government and it keeps vehicle trade transparent. Using Lawfinity, businesses can easily comply with the conflicting needs of different states and optimally tender and file VAT. From record keeping to return filing Lawfinity paves the way towards a hassle-free compliance, enabling businesses to concentrate on running their operations and steer clear the legal complexities of state indirect taxation.
Benefits and Advantages
- State-Level Tax Compliance Ensures your business meets state VAT laws for goods like fuel, alcohol and tobacco, which are outside the purview of GST.
- Avoidance of Legal Penalties Timely filing prevents fines, interest and legal actions from tax authorities.
- Maintains Business Credibility Demonstrates transparency and trustworthiness, especially when seeking state government contracts or licenses.
- Enables Tax Credits In some states, VAT-registered dealers can claim set-offs or credits against VAT paid on inputs.
- Support for Audits and Assessments Proper return filing and documentation make it easier to handle state tax audits efficiently.
Eligibility Criteria
- Businesses engaged in sale of goods still taxed under VAT (e.g., petroleum, alcohol, tobacco).
- Entities registered under State VAT Acts (prior to GST or through continuation of specific goods).
- Traders, manufacturers and wholesalers of VAT-taxable commodities.
- Turnover exceeding the state-prescribed threshold (varies by state).
Documents Required
- VAT Registration Certificate
- Business PAN and Address Proof
- Sales and Purchase Invoices
- Stock Register
- Input Tax Credit Records (if applicable)
- Tax Payment Challans
- Previous VAT Returns (if any)
- Bank Statements
- Authorization Letter (if Lawfinity is representing)
Steps for Applying
- Initial Consultation with Lawfinity: Evaluation of VAT applicability based on your goods and state laws.
- Document Collection: Compilation of sales, purchase and stock records.
- Tax Computation: Calculation of VAT payable/input credit based on applicable rates and transactions.
- Preparation of Returns: Drafting of VAT return forms as per state formats.
- Client Approval & Verification: Returns are reviewed and approved before submission.
- Online Submission: Filing of returns on the state VAT portal.
- Acknowledgment and Follow-Up: Lawfinity ensures you receive confirmation and manages any notices or queries.
Penalties
- Late Filing Penalty Can range from ₹100 to ₹5,000 depending on the state.
- Interest on Late Payment Charged on the tax due at rates ranging from 12% to 18%.
- Failure to File Returns May result in cancellation of VAT registration and further penal actions.
- Incorrect Filing May attract fines or audits by tax authorities.
Timelines
VAT Returns
Monthly / Quarterly 15th or 20th of next month (state-specific)
Processing Time
Data compilation: 2 to 3 days Return preparation and submission: 1 to 2 working days
Timelines may vary depending on document verification and government approvals.
Fee
Frequently Asked Questions
Because every great business starts with the right answers.
Yes, VAT is applicable on select goods like petroleum, alcohol and tobacco which are outside the scope of GST.
Businesses trading in VAT-taxable goods in states where VAT is still applicable must file returns.
Yes, if your business deals with both VAT and GST goods, you must comply with both.
Non-filing can result in penalties, interest and cancellation of VAT registration.
Yes, Lawfinity provides PAN-India support for VAT compliance.
Some states require DSC for online return filing; Lawfinity will guide accordingly.
Yes, subject to state laws, returns can usually be revised within a specified period.
A NIL return must still be filed to maintain compliance.
Lawfinity provides end-to-end VAT services including registration, monthly/quarterly filings, documentation and audit support.
Voices of Success
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Anil Yadav
Shaperz India Grain Private Limited
“From FSSAI to Trade License, Lawfinity handled all our approvals efficiently. One-stop solution for all licensing needs.”
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