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Gujarat VAT & CST

Electronically generated Forms 402/403/405 for movement of goods under Gujarat VAT Rules

[By Shaleen Shah (Partner), VNCA]

You are aware that any movement of goods going outside the state, or goods entering the state, or movement of goods within the state must be accompanied by documents prescribed under the Gujarat Value Added Tax Rules, 2006 (GVAT Rules).

Alongwith Invoice, Stock Transfer Note, Delivery Challan, Consignment Note, etc., every movement of goods going outside the state, or movement of goods within the state must be accompanied by Form 402. Similarly, alongwith Invoice, Stock Transfer Note, Delivery Challan, Consignment Note, etc., every movement of goods entering into the state must be accompanied by Form 403. For any movement of goods which is transiting through the state i.e. goods which are coming from any place outside the state and are bound for any place outside the state should be accompanied by Transit Pass in Form 405.

Till now, other than for specified goods, Form 402/403 could be prepared manually in the prescribed format. For specified goods, such Form 402/403 had to be procured from the jurisdictional commercial tax officer. In a series of Notifications & Circulars in December 2014, the State Government has amended the procedure for all movement of goods. It is now mandatory that all movement of goods, barring a few exceptions, must be accompanied by electronically generated Form 402/403/405. This amendment is effective from 22-Dec-2014.

The applicability of the amended procedure of electronically generated Form 402/403/405 is encapsulated in the following paragraphs.

The electronic generation of Forms is mandatory where movement is of goods belonging to the dealers whose annual total turnover exceeds Rs.50 crores [Rs.25 crores w.e.f. 15-Feb-2015.]

For movement of following goods, electronic generation of Form 402/403 is mandatory:

  • All kind of edible oil including refined edible oil.
  • All kind of oil seed including groundnut and peanut.
  • All kinds of oil cakes.
  • Iron and Steel (as specified in Entry-43 of Schedule – II to the Act).
  • Ferrous and Non-Ferrous metal and scrap.
  • Ceramic products including ceramic tiles.
  • Psyllium seeds and psyllium husk (Isabgul and Isabgul husk).
  • Brass Parts.
  • Processed tobacco including tobacco products of all types (except unmanufactured tobacco)
  • Motor vehicles, including motor cars, motor taxi cabs, motoretts, motor omni buses, motor vans, motor lorries, motor cycles, motor combination, motor scooter, mopeds, Chassis of motor vehicles and the body which is built oil on chassis of motor vehicles.
  • Cement
  • Marble or Granite (Raw or Polished)
  • Kota Stones
  • Naphtha
  • Light Diesel Oil
  • High Speed Diesel Oil
  • Yarn of all types except Nylon yarn, Polyester Viscose yarn and Cotton yarn.
  • Tea in Leaf or Powder Form
  • All kinds of plywood, block board, Boards, Decorative and laminated sheets. 
  • Coal including Coke. [w.e.f. 15-Feb-2015]
  • Timber and Articles of wood/Timber. [w.e.f. 15-Feb-2015]

For any movement of goods which is transiting through the state, electronically generated Transit Pass in Form 405 is mandatory.

Non-compliance of the aforesaid procedure shall lead to the presumption that inter-state movement of goods has not occurred and will also invite penalties.

For movement of all other taxable goods, for movement of exempted goods and for movement of goods within the state, dealers can continue with the existing procedure of Manual 402/403 till notified further.

For movement of goods other than by road, electronically generated 402/403 are also to be submitted & validated by the commercial tax officer.

  1. [...] Last year, the Gujarat VAT Department made it mandatory for certain categories of Dealers to electronically generate Forms 402/403/405 (hereinafter referred to as `eWay Bill’) for inter-state movement of goods. [Refer our Circular] [...]

    Posted by Vinod & Narendra | Gujarat VAT Forms 402 / 403 / 405 made mandatory | April 29, 2015, 6:54 pm