FOR NOT REGISTERING UNDER VAT

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This query is : Resolved

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If you've registered for GST and reported sales but not for VAT, you may be denied VAT credit. This is because input tax credit (ITC) on VAT is typically only available if you were registered for VAT at the time. You may face penalties if you were liable to register for VAT. This discussion explores what actions you can take and if any case law applies to your situation.

RAJENDRA KUMAR BHANDARI

RAJENDRA KUMAR BHANDARI (Querist)
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12 April 2025 the assessee has registered himself in GST and" reported all the sales" (GST return) and haven't registered himself in VAT. Now the credit of VAT is denied. please tell what the assessee can do and if there is any case law related.
Also please tell what is the maximum penalty that could be levied.

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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12 April 2025 The ITC on VAT cannot be availed if assessee was not registered in VAT.
Penalty can be imposed only if the assessee was liable to register in VAT.

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)
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29 September 2025 Good luck..

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