IN Value-added tax (VAT) Rates India — Value-added tax (VAT)

General VAT Rate Other Rates Local Currency
12% 20%, 4%-5.5%, 1%, 0% Rupee (INR)

India's general VAT rate is 12%, with other rates including 20%, 4%-5.5%, 1% and 0% that can apply to certain transactions.

India's VAT rate varies from 12.36% to 15% depending on which state you are in. The main VAT, called CENVAT, is made up of 12% rate + 3% Education Excess on the 12% = 12.36 since March 2012. India also has a service tax called GST of 15%, implemented in June 2016.

India is a member of the Asia-Pacific Trade Agreement (APTA), South Asia Free Trade Area (SAFTA), Bay of Bengal Initiative for Multi-Sectoral Technical and Economic Cooperation (BIMSTEC) trading bloc, which may affect international VAT collection and regulations.

Consumption Taxes in India

India has multiple consumption taxes, which apply in different situations depending on what purchase is being made. These taxes include the following:

Value-added tax (VAT)

Central sales tax (CST)

Service tax

Excise duty

Customs duty

Entry tax (specific to states)

Goods and services tax (initially proposed to be introduced in 2016 but more likely to be 2017)

These taxes were introduced in India at the following times:

VAT
Implemented in most of the states in India, effective from 1 April 2005 (replaced the sales tax regime)
CST
1956
Service tax
1994 (scope gradually widened and shifted to a negative list system in 2012)
Excise duty
1944
Customs duty
1962
Entry tax
2000
VAT
Levied and administered by the states
CST
Levied by the central government, but collected and administered by the states
Service tax
Levied and administered by the central government

India VAT rates for 2017

Standard
Ranges from 12.5% to 15% among the states
Other
0%, 1%, 4% to 5.5% (depending on the products and state legislation) and 20%

India CST rates for 2017

Goods purchased for resale, use in manufacturing or other specified usage
2% (against issue of statutory Form C by the customer)
Other cases
VAT rate applicable in the state of origin (where Form C is not available)
Service tax rate

14%


India VAT number format

Businesses in India that are required to collect tax will be issued an identification number. Tax identification numbers can be verified with the , and will follow a certain format. The VAT number format is 11-digit number format; first two digits identify the state of registration.


India VAT and CST return periods

Businesses in India that are required to collect tax from consumers must file regular tax returns with the in New Delhi. India's VAT and CST return periods are:

Annually/half-yearly/quarterly/ monthly


India Service tax return periods

Businesses in India that are required to collect tax from consumers must file regular tax returns with the in New Delhi. India's Service tax return periods are:

Half-yearly


India Value-added tax (VAT) Thresholds

These are the revenue thresholds at which businesses in India are required to start collecting and remitting tax.

VAT registration
Generally INR500,000 but varies from state to state
CST registration
None
Service tax registration
INR10,00,000

Recovery of VAT by non-established businesses

Non-established businesses are small, unincorporated businesses that sell taxable goods and may consist of a single individual, or several. Non-incorporated businesses in India are not required to collect taxes from the consumer.


India VAT Refunds

Many countries allow tourists, and others making purchases for export, to receive a VAT refund on exiting the country (or make purchases VAT free). While we don't have data on the India VAT refund program, more info can be obtained from the .


IN Value-added tax (VAT) Rates India Tax Sources & Citations

  • EN: India Value Added Tax
  • RU: НДС
  • CN: 增值税
Note: This page is intended to be a simple overview of India's consumption tax structure, is provided as-is, and is not legal advice. Please let us know if any of the India tax information on this page is incorrect or out of date.
Citations:
  1. Ernst & Young global VAT tax study, India (updated 2017)

  2. ← Back to World VAT Rates
** This Document Provided By SalesTaxHandbook **
Source: http://world.salestaxhandbook.com/in-india