VAT Returns Filing
Value Added Tax (VAT) is a consumption tax levied on the value added to goods and services at each stage of production and distribution. Businesses registered under VAT must periodically file VAT returns with the tax authorities. Here’s a breakdown of VAT return filing in India:
Who Needs to File VAT Returns?
- Any dealer (business) registered under VAT in India needs to file VAT returns.
- The registration threshold for VAT can vary depending on the state. In some states, it’s a mandatory requirement for all businesses, regardless of turnover.
Frequency of Filing:
- VAT return filing frequency can be monthly, quarterly, or half-yearly, depending on the state VAT laws and the dealer’s turnover
What's Included in a VAT Return?
A VAT return typically includes details of:
- Outward supplies (sales made) during the filing period
- Input tax credit (ITC) availed on purchases
- Tax liability (difference between output tax and ITC)
- Any other relevant information as mandated by the state VAT laws
How to File VAT Returns:
- Most states in India have adopted online filing of VAT returns.
- You’ll need to register on the official VAT portal of your state tax department and file returns electronically.
- Some states might also allow offline filing using prescribed forms.