VAT Registration in Karntaka

Last Updated at: Oct 30, 2020
The Karnataka State budget for fiscal 2020-21 has proposed a 3 percent increase in VAT on petrol and Diesel. The budget proposed to increase VAT on petrol to 35 percent from 32 percent and on diesel to 24 percent from 21 percent.


Value-added Tax (VAT) is paid to government on the sale of certain goods and services. Businesses to which VAT is applicable must get registered once their turnover crosses Rs. 7.5 lakh in Karnataka. However, importers and online sellers on portals such as Flipkart, Amazon and Snapdeal are all required to have a VAT registration no matter what their turnover. Any trading or manufacturing company, whether a sole proprietorship or partnership or private limited company, should have VAT registration. There is no security deposit.

Documents required:
Identity proof: Copy of Ration card, Voter ID or Passport

Passport size photogarph

If business premises is own, title deed; if rented, then rental agreement and electricity bill for past two months

Bank Details of managing director, if private limited company

PAN Card of business or sole proprietor

MoA & AoA

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Procedure for Registration:
Fill the application on http://ctax.kar.nic and submit the above-mentioned documents

Within seven days, an inspector will verify the documents and come for inspection if satisfied with your submission.

15 days from this inspection, the inspector will hand you the certificate.

VAT Rates
VAT on Jewellery, Imitation Jewellery, Precious Stones: 1.1%

VAT on Readymade Garments, Coffee, etc: 4%

VAT on Liquor, Oil & Tobacco: 20%