VAT (value added tax) has replaced sales tax in India, including in Maharashtra, to establish a uniform, transparent taxation system. VAT is collected from producers and sellers on the incremental value added at each stage of production and distribution. In Maharashtra, VAT is governed by the MVAT Act and applies to the sale of goods at rates from 1-20% according to schedules. Key VAT concepts include the definition of goods, dealers, importers, and sales/purchase prices. Manufacturers and businesses with over 1 lakh annual sales or 10,000 rupees of taxable purchases/sales annually must register and file VAT returns electronically monthly, quarterly, or half-yearly.

2. Introduction
VAT is a system of indirect taxation, which has been
introduced in lieu of sales tax.
It is the tax paid by the producers, manufacturers, retailers
or any other dealer who add value to the goods and that is
ultimately passed on to the consumer.
VAT has been introduced in India to ensure a fair and
uniform system of taxation. It is an efficient, transparent,
revenue-neutral, globally acceptable and easy to
administer taxation system.
 It benefits the common man (consumer), businessman
and the Government.

3. Earlier the State of Maharashtra had introduced VAT in respect
of very few specified items under the old Bombay Sales Tax Act.
The entire Bombay Sales Tax Act and certain related taxes got
replaced by the Maharashtra Value Added Tax Act (MVAT Act),
2002 with effect from 1st April 2005
VAT, a globally recognized sales tax system, has been
introduced in more than 130 countries
VAT in Maharashtra is levied under a legislation known as the
Maharashtra Value Added Tax Act (MVAT Act), 2002,
supported by Maharashtra Value Added Tax Rules (MVAT
Rules). VAT is levied on sale of goods including intangible
goods.
Rate of VAT applicable in the country is between 4 % to 12.5%

4. Payment, Due Date & Penalty
Payment
VAT needs to be paid on a Monthly, Quarterly or half
yearly basis
Due Date
Monthly/ Quarterly – 21 Days
Half Yearly – 30 Days
Penalty
Rs. 5000/-

5. Applicability of VAT
Goods Rate Items Covered
Schedule A Nil Tax free Goods
Schedule B 1% Gold, Silver, Precious Metal and Stone
Schedule C 4% Goods used for industrial Input
Schedule D 20% Foreign Liquor, Indian Liquor, Molasses, High Speed
Diesel Oil
Schedule E 12.5% Remaining

6. Few Concepts
Goods
“Goods” means every kind of moveable property
Does not include: Newspapers, actionable claims,
money, stocks, shares, securities or lottery tickets
Includes: Live stocks, growing crop, grass and trees
and plants including the produce thereof including
property in such goods attached to or forming part of
the land which are agreed to be severed before sale or
under the contract of sale;

7. Dealer
“ Dealer” refers to a person who buys or sells goods
within the state for a valuable consideration.

8. Importer
“Importer” means a dealer who brings any goods into
State or to whom any goods are dispatched from any
place outside State;

9. Purchase Price
“Purchase Price” means the amount of valuable
consideration paid or payable by a person for any
purchase made including any sum charged for
anything done by the seller in respect of the goods at
the time of or before delivery thereof, other than the
cost of insurance for transit or of installation,
when such cost is separately charged.”

10. Sale
“Sale” means a sale of goods made within the State for
cash or deferred payment or other valuable
consideration but does not include a mortgage,
hypothecation, charge or pledge.

11. Sales Price
“Sale Price” means the amount of valuable
consideration paid or payable to a dealer for any sale
made including any sum charged for anything done
by the seller in respect of the goods at the time of or
before delivery thereof, other than the cost of
insurance for transit or of installation, when such
cost is separately charged.

12. VAT Applicability
Importer
1. Annual Sales Turnover should be above 1 lakh
2. In a year the value of the taxable goods sold or
purchased should be more than Rs. 10,000/-

13. Other
Annual Sales turnover should be more than 5 lakhs
In a year the value of the taxable goods sold or
purchased should be more than Rs. 10,000/-

14. E - Registration
Location
Name of Business
Name of Applicant
Status of Applicant
PAN
Select : MVAT , CST Act
Request ID & Retreival

15. Filling the form on-line
Acknowledgement
Physical Submision of Form & Documents
Personal Attendance of Applicant for Photo-sign.
Obtaining TIN Allotment Letter
E-services enrollment & Submission of its
Acknowledgement.

16. Filing of MVAT
E Registration is required
Download – Forms – Electronic forms –
 - e-applications for CST forms
Off-line filling of Forms
E-Application for CST Forms C / F / H / E-I/ E-II
Location of Main POB
CST RC/TIN of Form accepting Dealer
Period of Transaction (for F Forms -Monthly, for
Others-Quartrerly, Half Yearly)
Total No. of Transactions
Total Value of Transactions
Description of Major Goods

17. Validation of File
If error shows, open Error Sheet and correct the errors
On Validating again, –Rem.txt file is generated in My
documents folder
Dealer Login & Password
E-Services - E-CST Declarations
Browsing and uploading
Acknowledgement

18. Thank You