Registration
This query is : Resolved
10 August 2009
If a firm is rquire to get registration if it is doing 100% export?
10 August 2009
Yes as 100% EOU with lots of benefits for 100% export units.
10 August 2009
As per the Kerala VAT ACT ,benefits like "Refund of input tax in the case of export sale" can be availed. For claiming the input tax refund VAT registration is mandatory.
11 August 2009
Thanks for reply further the firm is buying on retail invoice and exporting 100%, the turnover is 50L, and do not want any benifits, its a Delhi case.
20 July 2025
Thanks for the clarification. Here's the precise answer to your query considering it's a Delhi-based firm, engaged in 100% exports, and not availing any input tax refund:
🔹 Is VAT Registration Required for 100% Export Firms in Delhi (pre-GST)?
No, VAT registration is not mandatory if:
The firm deals exclusively in exports, and
It is not claiming any input tax credit (ITC) or refund, and
It is purchasing on retail invoices (i.e., not availing input VAT credit).
🔹 Important Notes:
Under the Delhi VAT Act (DVAT), registration is usually mandatory when:
The dealer makes taxable sales within Delhi and
The turnover exceeds the threshold (Rs. 10 lakhs, generally).
However, for 100% export-oriented units, if:
No local sales are made, and
No tax benefit is claimed (like ITC refund),
→ Registration may not be required.
🔹 Exception – If You Want Refund:
If in the future, the firm decides to:
Claim input tax refund on purchases used for exports (which is allowed under Rule 30 of DVAT Rules),
→ Then VAT registration becomes mandatory.
🔹 Recommendation:
Even if not mandatory now, it's often advisable to get VAT registration for:
Credibility with suppliers and customers
Eligibility for future refunds
Smooth export documentation (e.g., Form H under CST for goods purchased for export)
🔹 Is VAT Registration Required for 100% Export Firms in Delhi (pre-GST)?
No, VAT registration is not mandatory if:
The firm deals exclusively in exports, and
It is not claiming any input tax credit (ITC) or refund, and
It is purchasing on retail invoices (i.e., not availing input VAT credit).
🔹 Important Notes:
Under the Delhi VAT Act (DVAT), registration is usually mandatory when:
The dealer makes taxable sales within Delhi and
The turnover exceeds the threshold (Rs. 10 lakhs, generally).
However, for 100% export-oriented units, if:
No local sales are made, and
No tax benefit is claimed (like ITC refund),
→ Registration may not be required.
🔹 Exception – If You Want Refund:
If in the future, the firm decides to:
Claim input tax refund on purchases used for exports (which is allowed under Rule 30 of DVAT Rules),
→ Then VAT registration becomes mandatory.
🔹 Recommendation:
Even if not mandatory now, it's often advisable to get VAT registration for:
Credibility with suppliers and customers
Eligibility for future refunds
Smooth export documentation (e.g., Form H under CST for goods purchased for export)
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