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Gujarat VAT & CST

Mandatory E-Payment of VAT in Gujarat

The Government of Gujarat has vide Public Circular No.Gujka-VAT-86/Ja.70/63 dtd.09/03/2009 introduced electronic payment system for payment of taxes under Gujarat Value Added Tax Act from April 2009 onwards. Accordingly –

  • For dealers who have paid VAT of Rs.10 Lacs or more during the financial year 2007-08 or 2008-09 E-Payment of tax is made compulsory for tax payable as per monthly or quarterly return, as applicable, under the Gujarat VAT Act. This rule is applicable for tax payable as per April-09 monthly return or April to June-09 quarterly return and other subsequent monthly or quarterly returns of any period. The Department will initiate proceedings in the event of non-compliance of this mandatory requirement.
  • The dealer whose tax payable or paid amount is less than 10 lacs may voluntarily adopt this electronic payment system if they desire.

Please note, there is no change in due dates for payment of taxes.

The gist of steps to be followed for electronic payment of VAT is as follows:

  1. Obtain Internet Banking Facility from any of the enabling banks. As per our information, currently only SBI is approved for payment of Gujarat VAT taxes.
  2. Open Website www.commercialtax.gujarat.gov.in
  3. Select online payment from the Home page.
  4. Insert User ID and Password in open screen which is created after step no. 3
  5. Select e-challan link on treasury website. This will open electronic challan form.
  6. Fill up the challan form with actual VAT / interest / penalty payable.
  7. Select the Bank for E-Payment (enabling bank only). On selecting the same, the dealer will be directed to the respective Bank’s website.
  8. Thereafter, Login into the Bank’s website with the Internet Banking User ID & Password provided to you by your bank against step no.1.
  9. After authentication as per step no.8, the system will then automatically display the challan form as per step no. 6.
  10. Then select the Inter Banking Account Number for payment of tax.
  11. If the transaction is successful, the dealer can generate Unique Challan Identification Number (U.C.I.N.)
  12. Copy of the UCIN generated in step no.11 must be submitted to the Department alongwith the return.

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