Can I make VAT payment online?

Last Updated at: October 18, 2019
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When the Value Added Tax was implemented, it was given under the purview of state governments. Due to this reason, the rules of VAT differ from state to state. In this article, we answer some of the most commonly asked questions related to it, such as can it be done online?

Since enforcement of value-added tax, or VAT, and collection of it comes under the purview of state governments, different states have different VAT rules and implementation guidelines. Hence, the procedure for tax implementation, rates of VAT, timelines for VAT payment and VAT return filing all differ from one state to another. However, to encourage easy VAT payment, most states have made it much easier to make VAT payments online.

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Making VAT Payment Online

So, yes, you can make VAT payment through the online portals of banks listed on the state government’s VAT website. For example, you can make payments to the governments of West Bengal, Gujarat, Maharashtra, Tamil Nadu, Andhra Pradesh and others via HDFC Bank.

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Due Date for VAT Payment

As with everything else, due dates for VAT payment also differs with each state. For example, in Maharashtra, the monthly payment for January would need to be made by the 21st of February, whereas, in Madhya Pradesh, the monthly payment for January would need to be made by the 10th of February. In certain states, such as Gujarat, the due date for online payment is a day later than the due date for physical payment.

Penalties for Delayed VAT Payment

You need to make VAT payments on time or pay hefty penalties, which are about as high as those levied by credit card companies. In Maharashtra, you would pay 1.25% per month, whereas in New Delhi you would pay 1.5% per month.

Different Due Dates for Partnerships & Companies

In all Indian states, partnerships and sole proprietorships only need to make VAT payments and file VAT returns every quarter, whereas companies need to do so every month.

To say, in conclusion, one should always go through the state’s rules for VAT. But in general, VAT can be paid through the online portals of banks, but the payment differs with each state. Similarly, there is a hefty penalty for late payment, but it varies from state to state!

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