Odisha VAT Registration and VAT Rates

Odisha formerly known as Orissa is a fast growing state that has recorded an economic growth rate above the national average. With Odisha having plenty of natural resources and a large coastline, it has emerged as a preferred destination for setting up large manufacturing units. In this article, we look at Odisha VAT or Odisha VAT Act, 2004 - which determines the taxation of sale of goods and products in the state of Odisha. In India, each of the states have implemented a VAT Act distinct for their state based on the Guidances provided by the Central Government's Empowered Committee. Therefore, this article covers the procedures and aspects of VAT only for the state of Odisha.

Odisha Vat Registration

In Odisha, VAT Registration is mandatory for dealers with a turnover above Rs.5 lakhs during the current year or during the preceding twelve months. In addition, VAT registration is also mandatory for those dealers involved in the sale or purchase of goods from other states or those involved in manufacturing of goods with a turnover of Rs.1 lakh or more per year.

If a dealer doesn't qualify under for mandatory Odisha VAT Registration under the Odisha VAT Act, 2004, the dealer may still obtain Odisha Vat Registration voluntarily under Section 26. Those wishing to establish a business in Odisha may obtain VAT registration voluntarily under Section 26.

To obtain Odisha Vat Registration, the dealer must submit application for VAT Registration in Form VAT 101, proof of identity, proof of address, list of items to be manufactured or traded, PAN copy, bank statement, photo of the promoters and other details to the concerned authorities.

Odisha VAT Rates

Odisha VAT Rates can be divided into four categories based on the four schedules to the Odisha VAT Act, 2004. The VAT Rates are as follows:

Odisha VAT Rate - Schedule A: Goods exempted from VAT Tax in Odisha (Example: Books, Cotton, Curd, Fresh Milk, Ginger, etc.,)
Odisha VAT Rate - Schedule B: Goods subject to VAT on turnover of sales or purchases (Examples: Gold, Jeweller, Computer Stationary, etc.,)
Odisha VAT Rate - Schedule C: Goods subject to tax at a single point on turnover of sales or purchases (Examples: Liquor, Motor Spirits, etc.,)
Odisha VAT Rate - Schedule D: Goods subject to tax under sub-section (8) of Section 2 and Sub-section (5) of Section 20 (Examples: Capital goods, second hand purchase of capital goods, vehicles, etc.,)

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Odisha VAT E Filing

All Odisha dealers are required to file an annual VAT Return within six months from the end of the financial year. Further, dealers whose annual turnover is over Rs.40 lakhs must submit an annual VAT audit certificate along with the annual VAT Return. In addition to the annual VAT Return, dealers are requried to file monthly or quarterly VAT Return baed on their respective tax period within 21 days of end of tax month or tax quarter, respectively. VAT Returns can be e filed through

To start a new business or obtain VAT Registration in Odisha, visit IndiaFilings.com

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Frequently Asked Questions

Common questions about Odisha VAT Registration & Rates.

Dealers with a turnover above Rs.5 lakhs during the current year or the preceding twelve months must register for VAT in Odisha. Additionally, dealers involved in the sale or purchase of goods from other states or those involved in manufacturing with a turnover of Rs.1 lakh or more per year must also register for VAT.

Yes, even if a dealer does not qualify for mandatory VAT registration under the Odisha VAT Act, 2004, they may still obtain VAT registration voluntarily under Section 26. Dealers wishing to establish a business in Odisha can also obtain VAT registration voluntarily under the same section.

To obtain VAT registration in Odisha, a dealer must submit an application in Form VAT 101, along with proof of identity, proof of address, a list of items to be manufactured or traded, a copy of their PAN card, bank statements, photos of the promoters, and other relevant details to the concerned authorities.

The Odisha VAT Act, 2004, classifies goods into four schedules for determining VAT rates. Schedule A lists goods exempted from VAT, Schedule B lists goods subject to VAT on turnover of sales or purchases, Schedule C lists goods subject to tax at a single point on turnover, and Schedule D lists goods subject to tax under specific sections of the Act.

Yes, all dealers in Odisha are required to file an annual VAT return within six months from the end of the financial year. Dealers with an annual turnover over Rs.40 lakhs must also submit an annual VAT audit certificate along with the annual VAT return. Additionally, dealers must file monthly or quarterly VAT returns based on their respective tax periods within 21 days of the end of the tax month or quarter.

VAT returns in Odisha can be e-filed through the designated online portal for VAT filing in the state. The article mentions that VAT returns can be e-filed through the portal, but does not provide the specific URL or website address.

Odisha has emerged as a preferred destination for setting up large manufacturing units due to its natural resources and coastline. VAT registration in Odisha is crucial for dealers involved in the sale or purchase of goods within the state, as it determines the taxation of these transactions under the Odisha VAT Act, 2004.

Yes, Schedule A of the Odisha VAT Act, 2004, lists goods that are exempted from VAT tax in the state. The article mentions examples of such goods, including books, cotton, curd, fresh milk, and ginger.

The Odisha VAT Act, 2004, is the state legislation that determines the taxation of the sale of goods and products in the state of Odisha. It outlines the procedures, rates, and schedules for VAT (Value Added Tax) applicable to various goods and transactions within the state.

No, Odisha VAT registration is not applicable to all businesses in the state. The article clearly mentions the turnover criteria and other conditions under which VAT registration becomes mandatory or voluntary for dealers in Odisha. Businesses that do not meet these criteria may not need to register for VAT in the state.