If you run a company handling goods or services, you might have to routinely file VAT returns. Value Added Tax, or VAT, is a kind of indirect tax applied prior to the GST launch. Although most places have replaced GST for VAT, some Indian states still collect VAT on particular goods, including alcohol and petrol products. Should your company fall into this category, you still must properly file VAT returns to remain compliant.
Filing a VAT Return Means What?
File VAT returns—that is, report your sales, purchases, tax collected, and tax paid over a designated period to the government. This return enables the government to verify whether the VAT paid is the right level.
Who Should Submit VAT Returns?
If your company offers goods still subject to VAT regulations, you must file a VAT return.
- Your registered with the state VAT department.
- You deal in goods like petrol, diesel, or alcohol—which some states exclude from GST coverage.
Records Required for VAT Return File
Prepare these files before beginning the process:
- Invoices of Sales
- Purchase records
- Certificate for VAT registration
- Prior return copies
- Taxes both in input and output
- Bank records (should they be necessary)
How to Step-by-Step File VAT Returns?
Here’s a basic procedure to help you file a VAT return free from ambiguity:
- Access State VAT Portal by login. Every state has a VAT website on their own.
- Add Business Details: State your VAT registration number and return period.
- Enter sales and purchase details here. Add specifics of taxable purchases and sales.
- Calculate VAT; mention collected and paid VAT and find out whether you have to pay extra.
- Attach all required invoices or records for upload.
- Once everything has been checked, online submission of the return.
- If you owe tax, pay it using challan or online banking.
- Always save a copy of the filed return for your records.
Advantages of VAT Filing
Regular filing of your VAT returns has many advantages.
- Steers clear of fines: Late filing might cause fines.
- Good Business Record: Helps to keep a tax record free.
- Easy Compliance: Gets government approvals or loans simple.
- Tax Refunds: Should you be qualified, you can claim input taxes.
Typical Errors to Stay Away From
Steer clear of these mistakes as you try to submit VAT returns:
- Missing invoices
- Bad tax computation
- Not changing contact number or address
- Filing following the due date
When Should One File the VAT Return?
While every state has different due dates, VAT returns are typically submitted either monthly or quarterly. To find your precise dates, check the VAT website of your state or see a tax advisor.
End Notes
Although most of the time GST has replaced VAT, some companies still have to report VAT depending on their goods and state laws. Correct and timely filing helps your company run without legal problems. Should you be unsure, a local tax advisor is always a great source of assistance.