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Value Added Tax (VAT)​

VAT on petroleum products is a state-level tax, allowing each state to determine its own VAT rates. This autonomy enables states to regulate taxation and pricing based on regional economic needs. Given the essential nature of petrol and diesel, state governments often impose higher VAT rates on these products compared to other goods, leading to increased retail prices.

One of the key reasons petroleum products remain outside the GST framework is their substantial revenue contribution to both central and state governments. Additionally, the complexities involved in seamlessly integrating fuel taxation into the GST system have led to their continued taxation under VAT.

VAT Registration & Compliance Services

Under the VAT Act, any dealer whose total turnover of sales or purchases exceeds ₹5 lakhs and whose taxable turnover surpasses ₹10,000 during a financial year is required to register for VAT and pay Value Added Tax. (For Gujarat VAT; other states may have different criteria for compulsory registration.)

Our VAT Registration Services:

We provide end-to-end assistance in obtaining VAT registration, ensuring a smooth and hassle-free process:

Why Choose Panchal S K and Associates?