Registration and return

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

27 January 2014 I am a trader of 'Ghau(wheat)','Chokha(rice)','Bajra','Tuverdal','Magdal','chanadal' etc. in gujarat. many iterms come from out of gujarat also.
My turnover is more than 1 cr for a year.

My question is
1) Whether I require to get registered for VAT or CST?

2) Can i register voluntarily if answer of 1 above is 'No'?

3) If I get registered but no vat liability is there due to tax free items, whether I require to file return ?

Querist : Anonymous

Querist : Anonymous (Querist)

28 January 2014 No expert is eligible to answer?

Aashok Kumar Sharma

Aashok Kumar Sharma (Expert)
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20 July 2025 Here's a clear answer to your queries about VAT/CST registration and returns for your trading business in Gujarat:

1) Do you require to get registered for VAT or CST?
VAT Registration:
In Gujarat, if your turnover exceeds the threshold limit (which is usually Rs. 5 lakh or Rs. 10 lakh depending on the state rules), you must get registered for VAT. Since your turnover is more than Rs. 1 crore, you are required to get VAT registration.
CST Registration:
CST (Central Sales Tax) registration is typically for dealers involved in inter-state sales. Since you mentioned you buy goods from outside Gujarat as well, you should also get CST registration if you are making interstate sales.
2) Can you register voluntarily if not liable?
If you are not liable to register (i.e., turnover below threshold), voluntary registration is generally allowed under VAT laws to avail benefits like input tax credit or compliance advantages. But since your turnover is above the threshold, you must register anyway.
3) If registered but no VAT liability due to tax-exempt goods, do you need to file returns?
Yes, you are required to file VAT returns even if you have zero VAT liability.
Filing returns is mandatory to report sales, purchases, and tax paid on inputs. Non-filing may attract penalties and notices from the VAT department.
Summary
Query Answer
VAT registration required? Yes, turnover > Rs.1 crore
CST registration required? Yes, if inter-state sales
Voluntary registration allowed? Yes, but not applicable as liable
Filing returns mandatory? Yes, even if no VAT liability

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