Which state the query relates to? The answer to the query will be based on the particular reference to the VAT Act. Also, tell us the turnover of towels...etc.
VAT registration is compulsory for dealers whose turnover exceeds the prescribed threshold, which is generally Rs. 25 lakhs (may vary based on the category of dealer and goods). Even if the goods sold are VAT-exempted items like towels, bedsheets, etc., registration may still be mandatory if turnover crosses the threshold. Explanation:
The West Bengal VAT Act requires registration if aggregate turnover exceeds Rs. 25 lakhs, regardless of whether the goods sold are exempt or taxable. However, if all the goods dealt in are fully exempt from VAT, some states provide exemptions from registration but this depends on specific state provisions. For West Bengal:
Check the specific clause in the West Bengal VAT Act regarding registration of dealers selling only exempt goods. Generally, dealers dealing exclusively in VAT-exempt goods are not required to register unless they undertake inter-state sales or other taxable activities.