IntroductionVAT 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. 

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%

Payment, Due Date & PenaltyPayment     VAT needs to be paid on a Monthly, Quarterly or half 

yearly basisDue Date     Monthly/ Quarterly – 21 Days    Half Yearly – 30 DaysPenalty

Rs. 5000/-

Applicability of VATGoods 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

Few ConceptsGoods

“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;

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

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

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.”

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.

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.

VAT ApplicabilityImporter1. Annual Sales Turnover should be above 1 lakh2. In a year the value of the taxable goods sold or

purchased should be more than Rs. 10,000/-

OtherAnnual Sales turnover should be more than 5 lakhsIn a year the value of the taxable goods sold or

purchased should be more than Rs. 10,000/-

E - RegistrationLocationName of BusinessName of ApplicantStatus of ApplicantPANSelect : MVAT , CST ActRequest ID & Retreival

Filling the form on-lineAcknowledgementPhysical Submision of Form & DocumentsPersonal Attendance of Applicant for Photo-sign.Obtaining TIN Allotment LetterE-services enrollment & Submission of its

Acknowledgement.

Filing of MVATE Registration is requiredDownload – Forms – Electronic forms – - e-applications for CST formsOff-line filling of FormsE-Application for CST Forms C / F / H / E-I/ E-IILocation of Main POBCST RC/TIN of Form accepting DealerPeriod of Transaction (for F Forms -Monthly, for

Others-Quartrerly, Half Yearly)Total No. of TransactionsTotal Value of TransactionsDescription of Major Goods

Validation of File If error shows, open Error Sheet and correct the errorsOn Validating again, –Rem.txt file is generated in My

documents folderDealer Login & PasswordE-Services - E-CST Declarations Browsing and uploadingAcknowledgement

Thank You