Sales Tax in Gujarat: Registration, Online Payment & Return e-filing

Updated: 30-12-2022 12:11:33 PM

The total tax paid to the authorities for the sale of certain goods and services is termed as sales tax. Rules for sales tax in Gujarat was enacted in 1969 and is applicable to the entire Gujarat. When the turnover related to sales purchase exceeds the relevant limits so specified then the liability of the dealer arises to pay tax from the very first day of the year. It is a form of indirect tax paid as an additional amount of money while purchasing goods and services. Taxes are a major source of revenue for any state and hence, the amount collected as sales tax is payable in the state where the particular goods are sold.

Types of sales tax found in most countries

1. Value Added Tax which is an additional tax levied on all sales.
2. Wholesale Sales Tax is the tax levied on carrying wholesale distribution or sales of manufactured goods.
3. Retail Sales Tax is the tax directly paid by the final consumers on sale of goods.
4. Manufacturers’ Sales Tax is levied on the manufacture of certain goods.

Sales tax is calculated by simply multiplying the cost of items with the specified sales tax rate applicable to it.

Sales tax Registration in Gujarat

Is registration process mandatory for an individual?

When the annual turnover of an individual engaged in the business of goods and products is Rs. 5 lakh and the taxable turnover exceeds Rs. 10,000 in a financial year, he/she is liable to get registered by filling the required form for registration along with the required documents.

Documents required for registration process

• Two passport size photographs
• Copy of electricity bill of the place of business
• Proof of ownership of the place of business
• Copy of election card of the owner
• Copy of registration certificate issued by custom and central excise authority
• Copy of Property tax bill of the place of business

The above documents should be duly attested by a Sales tax practitioner.

Forms required for sales tax in Gujarat

• Form 101 is used for registration whereas, 101A is used to declare the other places of business in the state of Gujarat.
• Form 101B to 101E is used to provide various other details to the authority like place of business outside India, details of its directors etc.
• Form 106 is used to provide information about the managers conducting the business.

Modes of Sales Tax payment in Gujarat

Sales Tax in Gujarat can be paid :-

1. Online or
2. Offline

Online payment of sales tax is an easier process since it can be made from anywhere anytime. The details of the payment can also be furnished immediately after payment. For making an online payment, dealers can visit the website of Gujarat commercial tax. After filling in the requisite details, one can choose an option to pay online or offline.

Sales tax Gujarat return e-filing and payment

The due date for filling a Sales Tax return is either June 30 or December 30. The June date is for those dealers whose annual turnover is less than Rs 1 crore whereas, those who do not need to furnish their sales tax return by June, will have to do so by the December due date. Any individual who becomes liable to pay sales tax should get registered, afterwhich, he/she can use any mode of payment. On the successful payment of the tax, an individual can furnish the sales tax return by selecting the specified form.

Frequently asked questions

1. How can a dealer upload the sales tax return online?

Ans. A dealer can login to the sales tax website and select E return form and select the tax period to upload the return.

2. What steps are to be taken in case dealer forgets the password of the sales tax account?

Ans. A dealer can reset the password by clicking on forget password and using the security question.

3. Within how many days will the registration process be completed?

Ans. A period of 30 days is usually taken to complete the whole registration process during which all the documents will be verified on the basis of which an acknowledgement receipt will be generated.

4. Does the rate for different goods and services vary or is it specific?

Ans. Each goods and products are rated at a specified rate mentioned in the schedules of the Sales Tax Act.