VAT in India
Value Added Tax (VAT) is a tax levied on the value added to goods at each stage of their production or distribution.
Before the implementation of the Goods and Services Tax (GST) in India in July 2017, VAT was the primary indirect tax on goods at the state level. With the introduction of GST, most goods and services moved under the unified tax regime. However, certain items still attract VAT due to their exclusion from GST.
Items that Attract VAT Post-GST Implementation
- Petroleum products: Crude oil, natural gas, petrol, diesel, and aviation turbine fuel (ATF).
- Alcoholic beverages: Liquor used for human consumption.
- Tobacco (in some states): VAT applies in addition to GST for certain tobacco products.
States retain the authority to levy VAT on these items, and the rates may vary across different states in India.
If you deal in the above-mentioned items and wish to manage VAT using TallyPrime, you can continue to do so seamlessly.
To enable VAT functionality and access related reports in TallyPrime, refer to: View VAT, Excise, Service Tax Reports | Use Extensions to View Reports.
Click the following links for more information about VAT in TallyPrime and related topics.
- VAT Masters
- VAT Purchases
- VAT Sales
- Reports
- VAT Journal Vouchers
Also check following links related to VAT in TallyPrime
