Last updated: December 17th, 2019 5:18 PM

Kerala VAT Registration and E Filing

VAT or Value Added Tax is a tax levied on the sale of goods and products in India. VAT is a multi point tax with dealers having the option to claim input credit, thereby transferring the VAT liability to the end consumer.  VAT is under the purview of the State Governments and in Kerala, VAT is levied and controlled by the Kerala Value Added Tax Act, 2003. In this article we look at Kerala VAT in detail, focusing on Kerala VAT Registration, Tax Rates and Kerala VAT E Filing.

Kerala VAT Registration

As per the Kerala VAT Act 2003, VAT Registration is mandatory in Kerala for the following persons in Kerala:

• Any dealer whose annual sales turnover during any year is greater than or equal to Rs.10 lakhs.
• Any dealer, who imports or exports goods from the State of Kerala to any other territory of India.
• Dealers involved in the sale of jewellery or gold or silver or platinum or other precious metals.
• Commission agent, broker, auctioneer or other acting on behalf of any principal.
• Any dealer residing outside the state of Kerala but doing business in the state of Kerala.

Any person or entity who fall under any of the category above are mandatorily required to obtain Kerala VAT Registration. Any other person or entity wishing to commence business in the State of Kerala may also get registered voluntarily under Section 15B of the Kerala VAT Act 2003. Once, an application for registration is made, the VAT registering authority will conduct a inspection and proceed to provide Kerala VAT Registration.

Kerala VAT Rates

In Kerala, goods and products are taxed under VAT in four main categories as under:

• Schedule I Goods and Products: 0% VAT Rate (Manually operated agricultural implement, aid for handicapped persons, coconut, fresh fruits and vegetables, etc.)
• Schedule II Goods and Products: 1% VAT Rate (Precious metals, precious stones, semi-precious stones, rice, etc.)
• Schedule III Goods and Products: 5% VAT Rate (Utensils, bakery products, castings, cotton, etc.)
• Goods not in any of the Schedule: 13.5% VAT Rate

In addition to the above, certain goods like cigarettes, aerated drinks, plastic bags and pan attract higher VAT as under:

• Cigars, cheroots, cigarillos, cigarettes, tobacco and tobacco substitutes are taxed at 15% VAT rate.
• Branded aerated soft drinks except soda and plastic bags made for carrying are taxed at 20% VAT rate.
• Pan masala and other manufactured tobacco, tobacco substitutes homogenised or reconstituted tobacco, tobacco extracts and essences are taxed at 22.5% VAT rate.

Click here to download complete Kerala VAT Tax Rates.

Kerala VAT E Filing

Dealers registered for Kerala VAT must periodic VAT Return and an Annual VAT Return. Dealers who had VAT payable of more than Rs.10 lakhs during the preceding year must file their returns on or before the 15th of each month. Dealers who had VAT payable of less than Rs.10 lakhs but more than Rs.25,000 must file their monthly return by the 20th of each month. Dealers not falling under any of the above category must file their monthly VAT return on or before the 25th of each month. In addition to filing monthly VAT Returns, dealers must also file an annual VAT return in Kerala on or before the 30th of April, each year. The VAT Returns can be E Filed in Kerala through http://comtax.kerala.gov.in/  

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