Amendment in Gujarat VAT Rules for filing of Returns & VAT Audit Report

[By Shaleen Shah (Partner), VNCA]

The Gujarat State Government has recently issued a Notification dtd. 15-Oct-2014 making significant amendments to the Gujarat Value Added Tax Rules, 2006 with effect from the date of the Notification. The gist of the amendments is as under.

PROVISIONS RELATING TO FILING OF MONTHLY / QUARTERLY RETURNS (AS AMENDED)

E-Filing of returns is now MANDATORY for all categories of dealers.

Quarterly Returns – The following categories of dealers are required to file quarterly returns:

Dealers opting for permission for Lumpsum payment of tax u/s 14 [small scale dealer], u/s 14A read with Rule 28(8)(bb) [works contract, annual permission only], u/s 14C [leasing] and u/s 14D [supply of food] are required to file quarterly returns in Forms 202 & 202A within 30 days from end of the quarter. Dealers opting for Lumpsum u/s 14B (agri-produce) are required to file quarterly returns in Forms 202, 202B & 202C within 30 days from end of the quarter. Where the lumpsum permission ceases to be valid, returns will have to be filed as per regular provisions for the remaining tax period.

Dealers who are not into manufacturing OR who do not undertake any inter-state transactions including imports, exports & consignment transfers are required to file quarterly returns in Forms 201, 201A & 201B within 30 days from end of the quarter and half-yearly Form 201C within 30 days from end of the half-year. When the dealer undertakes any manufacturing activity or any inter-state transaction, the Dealer will have to file returns as per regular provisions from the end of the relevant quarter.

Small Scale Dealers, other than those opting for lumpsum permission, whose total tax payable does not exceed Rs.60,000/- in the previous year or in the current year are required to file quarterly returns in Forms 201, 201A & 201B within 30 days from end of the quarter and half-yearly Form 201C within 30 days from end of the half-year. When the total tax payable exceeds Rs.60,000/-, the Dealer will have to file returns as per regular provisions from the end of the relevant quarter.

Co-operative societies manufacturing sugar are required to file half-yearly returns in Forms 201, 201A & 201B within 30 days from end of the half-year.

Monthly Returns – The following categories of dealers are required to file monthly returns:

All other dealers including Non-Localised Dealers (NLD), dealers who undertake imports & exports, a dealer who is a SEZ developer or a SEZ Unit, dealers claiming refund u/s 40 or claiming remission u/s 41 are required to file monthly returns in Forms 201, 201A & 201B within 30 days from end of the month and quarterly Form 201C within 30 days from end of the quarter.

Notwithstanding anything stated above, a newly registered dealer, for the first twelve months from the date of registration, will have to file monthly returns in Forms 201, 201A & 201B within 30 days from end of the month and quarterly Form 201C within 30 days from end of the quarter. After completion of first twelve months from the date of registration, the dealer will have to file returns as per regular provisions.

Additional Returns – Certain categories of dealers are required to file additional Forms alongwith the regular returns:

1) Dealer who is deducting tax at source on stipulated works contracts (WCT-TDS), is required to file quarterly return in Form 704 within 30 days from the end of each quarter.

2) Dealer who is claiming credit of such WCT-TDS u/s 59B is required to file Form 216A alongwith the main return for the period to which such TDS claim relates to.

3) Dealer who holds a certificate of exemption or deferment of tax under any incentive scheme is required to file Forms 203 & 204 alongwith the main return so long as he avails the benefit of exemption or deferment.

4) Dealer who is dealing in petroleum products mentioned in Sch-III is required to file Forms 212 & 213 alongwith the main return.

Annual Return – There are no changes in the time limit or Forms for filing of Annual Returns.

E-FILING OF VAT AUDIT REPORT

Dealers who are required to obtain VAT Audit Report will now have to upload the VAT Audit Report on the department’s website alongwith stipulated documents and an undertaking in the prescribed format.

ADDITIONAL FORM FOR NEW REGISTRATION

For New Registration, an additional declaration in Form 101F will have appended with the registration application.