VAT in Haryana: Rates, Eligibility & Registration
Haryana Government passed the Haryana Vat Act in 2003 in order to fix taxes on goods exchanged in the state. This act lays down the basis of the Commercial Tax Department regarding VAT collection in Haryana.
Do you wish to know more about VAT in Haryana? Keep reading this article to get a comprehensive guide about this concept.
What Is Value Added Tax?
Value Added Tax (VAT) refers to a consumption tax on goods and services levied at different supply chain stages during value addition. It starts from the initial manufacturing stages and ends at the final point of sale. The amount of VAT payable is calculated based on the difference between a product’s cost and the costs of other materials used in its products that have already been taxed.
What Are the VAT Rates for Goods or Services in Haryana?
The VAT rate in Haryana is different based on products. The following table can help understand the different tax rates on goods.
| Type of Goods | Tax Rate in Haryana |
|---|---|
| Precious metals and stones (silver, gold, etc.) and jewellery made from them | 1% |
| Aviation turbine petrol and fuel | 20% |
| Petrol and any hydrocarbon oil except crude oil | 25% |
| Imported foreign liquor (bottled) | 25% |
| Bottled licenced liquor sold in bars | 25% |
| Liquor (as per Punjab Excise Act) | 20% |
| High speed, super light and light diesel | 16.4% |
| Mobile phones (above ₹10,000) | 8% |
| Car tyres and tubes | 8% |
| Plyboard | 12% |
| Oil cake | 2% |
| Tobacco and products related to it | 20% |
| Products sold by one oil company to another (Petrol, Super Light Diesel Oil, Gasohol, Light Diesel Oil, Kerosene, High-Speed Diesel, etc.) | 4% |
Who Should Pay VAT in Haryana?
Businesses who earn a turnover more than ₹5 Lakh must pay Haryana VAT to the government. This applies to any person, dealers, organisations, and others, who indulge in selling goods and services in India. According to the Haryana Vat Act, dealers from various businesses can collect VAT from buyers. This act categorises various dealers in the following categories. They are liable for collecting VAT when their products are sold.
| Classes of Dealers | Taxable Quantum | Start Day of Tax Liability |
| Anyone who sells or purchases goods in inter-State trade or commerce while importing or exporting goods | Nil | From the day of making a sale or a first-time purchase |
| Dealers importing goods from one state to another | Nil | On the date of import. |
| Those who purchase goods in a state and then export this outside | Nil | From the day of purchase. |
| Dealers who live outside the state but deliver goods for sale in that state | Nil | On the day of the first supply. |
| Dealers who are brick-kiln owners or dealing with liquor, minerals, lottery tickets, etc. | Nil | From the day the gross turnover exceeds taxable quantum. |
| Other classes of dealers | ₹1 Lakh or more as per the rate | From the day the gross turnover exceeds taxable quantum. |
How to Register for VAT in Haryana Online?
Every dealer must register for VAT in Haryana. The Haryana VAT registration process is as follows.
Step 1: Visit the official website of Haryana Tax. Click on “New user registration”.
Step 2: Enter all your details and complete the registration process. From this page, you can download Offline Utility for Registrations forms under HVAT/CST, PGT, LT & ED Acts.
Step 3: Download and form and fill in the necessary information. Next, generate your XML file.
Step 4: Log in to your user account and upload this XML file. Upload all the required documents.
Step 5: Pay the registration fees. You can then access the VAT A1 and CST Forms.
Step 6: After signing these forms, annex the documents to a physical file and submit these to the Department of VAT in Haryana. Wait for their notification.
An Inspector will visit your business premises and note the activities. The reports will be sent to the Excise and Taxation Officer. From this department, a unique Tax Identification Number (TIN) will be allotted.
How to Pay for VAT Registration Fee in Haryana Online?
According to the VAT rules of Haryana, individuals need to pay a registration fee to complete this process. One must pay ₹100 under Haryana Vat and ₹25 under Central Sales Tax (CST). One can pay it online through an e-GRAS challan. Otherwise, it can be paid offline as court fees while submitting the physical documents.
How to File a Return Against the VAT Payment in Haryana?
The Haryana Government and the Commercial Tax Department of Haryana have provided an e-filing tool and excel template for online filing of returns of users. The following steps can be useful.
Step 1: Visit the official website of Haryana Tax. Click on “Download Dealer Utility Tool – Returns” from the Home page or Form 14D.
Step 2: Extract these files from downloaded tools. Run the file named setup.bat on your device.
Step 3: Double click on the run.bat file. It will display the screen with HETD e-Return Utility.
Step 4: Next, click on "Returns to be filed by Registered Dealer/Applicants who have applied for Registration”. Next, click on R1 and then on “Create New Form” in the dialogue box.
Step 5: Your device will display Index, Instructions, CST Form 1 and R1. Click on “Create New Form” and download the Excel template.
Step 6: Fill out the forms and annexures, importing your VAT receipts and other details. You can create XML files. Upload these on the portal from your account.
How Is VAT Different from GST in Haryana?
VAT and GST (Goods and Services Tax) might sound similar, but the two have major differences. The following differences can help you distinguish these two.
| Areas of Differences | VAT | GST |
| Legal | VAT rates are different in each state. | GST has uniform rates in every country. |
| Taxable event | It is imposed on the sale of goods. | It is imposed on the supply of goods and services. |
| Registration policy | Businesses with a turnover of fewer than ₹10 lakhs can register for VAT. | Businesses with a turnover of more than ₹20 lakhs can register for GST. |
| Input Tax Credit (ITC) | No ITC is available regarding customs duty paid. | ITC is available when taxpayers claim a credit on supplies received. |
| Authorities | Respective state legislatures regulate the tax collection. | Both state and central governments have an equal share in handling GST. |
Frequently Asked Questions
What is the date of submission of VAT returns?
For dealers, VAT returns are usually due on the 20th of every month. They must file the return with all the details before this date to receive the returns on time.
What are the three types of VAT?
Vendors can face three types of VAT while purchasing goods in India. These include standard-rated, zero-rated and exempt supplies.