VAT in Manipur: Rates, Eligibility, Registration Process & Fee
The central government charges VAT from the business dealers, levying it upon the market price of goods and services. Knowing the VAT regulations will benefit you if you are a dealer from Manipur.
Curious to know more about VAT in Manipur? Get quick guidance from this article regarding its rates, registration and return filing.
What Is Value Added Tax?
Value Added Tax (VAT) is a popular consumption tax levied on each supply chain step. These are steps whereby supplies add value to a manufacturing process. The VAT in Manipur is charged from any process that adds value to a product or service. Dealers must add this tax to their products’ market price and pay it to the government.
What Are the VAT Rates for Goods or Services in Manipur?
Regarding the rates of Manipur VAT, the government has made two schedules mandatory as part of this law. The following table can help you understand the products that contain VAT and rates applied on these.
Schedule |
Applicable Goods or Services |
VAT Rate in Manipur |
Schedule I |
Precious stones (gold, platinum, silver, etc.) |
1% |
Edible oil and kerosene oil |
5% |
|
Utensils, hosiery goods |
||
Coconut fibre, bamboo, tea |
||
Ore and minerals, chemical fertilisers |
||
Used cars and tractors |
||
IT products |
||
Schedule II |
Good grains, fish, meat, fresh vegetables, salt, etc. |
0% |
Books, handlooms, textiles |
||
Agricultural implements, tobacco, sugar, etc. |
Who Should Pay VAT in Manipur?
According to the Manipur VAT Act, every dealer must pay VAT, considering they meet the following criteria.
- If a dealer’s gross turnover exceeds the taxable limit (₹5 lakh), they must pay VAT.
- Any dealer registered under the Manipur Sales Tax Act 1990 or Central Sales Tax Act 1956.
The government has set the following taxable limits for various dealers.
| Description | Taxable Limit |
|---|---|
| Dealers who import goods to Manipur for sale on his/her behalf | Nil |
| Those who manufacture and produce goods for sale | ₹4 lakh |
| Dealers engaged in any other business apart from the two mentioned above | ₹3 lakh |
| Those involved in executing work contracts | ₹50,000 |
How to Register for VAT in Manipur Online?
An individual, firm, body corporate, association of individuals and Hindu Undivided Family (HUF) can register for VAT in Manipur. According to the VAT rules of Manipur, the following steps can be useful for e-registration from the government website of Manipur.
Step 1: Visit the official website of the Manipur Tax Department. Click on “e-Registration” from the left panel.
Step 2: Next, you will find several links for the registration process. Click on “e-Registration for VAT”.
Step 3: Start filling up this form. It has several parts, including parts A, B, and C. There are also annexures.
Step 4: After completing this form, upload the required documents. Then click on finish.
Step 5: Click on “e-registration” from the Home page again. From this page, click on the link for “e-Registration Payment” and make your payment.
Step 6: After completing this process, you can click on “e-Registration Status” to check your application’s status online.
How to Register for VAT in Manipur Offline?
If you choose the offline procedure, here are some important forms that you might require in this process.
| Form | Purpose |
|---|---|
| Form 5 | Application for compulsory/voluntary registration |
| Form 6 | Registration certificate |
| Form 24 | Tax invoice |
| Form 27 | Declaration for importing goods in Manipur |
| Form 28 | Declaration for dispatching goods outside Manipur |
| Form 30 | Certificate for tax clearance |
If you cannot complete the process online, you can opt for the following steps toward offline registration.
Step 1: Visit the tax department office and procure Form 5. This is for applications for compulsory/voluntary registration.
Step 2: Fill out this form and submit it with other documents. If required, submit the other forms that are applicable for your goods.
Step 3: Make the necessary payment. Once the inspection is completed, you will receive a notification for any further requirements.
How to Pay for VAT Registration Fee in Manipur Online?
If you opt for the offline procedure, you should consider procuring Form 19 from the tax department. You can pay the registration fee through challan in this form. Designated banks will send copies of the challan to tax authorities.
For paying the VAT registration fees online, you can go through the following steps.
Step 1: Visit the official website of the Manipur Tax Department. Click on "e-Registration" from the left panel.
Step 2: Click on “e-Registration Payment” on this screen. Enter your unique Acknowledgment number and date.
Step 3: Next, you can pay your fee online on this page.
How to File a Return Against the VAT Payment in Manipur?
Every dealer needs to file to receive VAT return payments. If you are unaware of its procedure, the following steps will be helpful.
Step 1: Visit the official website of the Manipur Tax Department. Click on "e-Services” from the left panel.
Step 2: Download the 14D zip to your device and unzip it. Fill out a PDF form that you will find here.
Step 3: Convert your PDF file into XML through the software in this zip. You might also need Form 24 for submitting your invoices.
Step 4: After submitting this form, download the acknowledgement receipt and get a printout for future references.
How Is VAT Different From GST in Manipur?
VAT might sound similar to GST as both deal with goods and services. However, one should consider the differences between these two here. Here are some factors that differentiate between VAT and GST.
| VAT | GST |
|---|---|
| VAT has been effective in Manipur since 2005. | GST was introduced recently in 2017. |
| VAT rates are applicable in the various stages of value addition. | GST rates are applicable at every point of sale. |
| The Manipur government controls VAT collection and maintenance. | The state and central governments have equal rights concerning GST collection and maintenance. |
| VAT rates are unique for Manipur. | GST rates are uniform across all the parts of India. |
| The sellers from Manipur have the liability of tax collection and payment. | The consumers have the liability of tax payment in Manipur. |
Hopefully, now you have comprehensive knowledge about VAT in Manipur. As this article discussed, it is a significant tax that dealers need to pay if they meet the criteria. Registering for VAT is simple and can be completed seamlessly through the official website.
Frequently Asked Questions
Who is exempted from paying VAT in Manipur?
According to section 10(26) of the Income Tax Act, one should exempt any member of the Scheduled Tribe residing in Manipur from paying any tax. This includes GST as well.
What are the types of VAT?
There can be three types of VAT to be paid by the vendor. These include standard-rated, zero-rated and exempt supplies.