Up vat registration

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Querist : Anonymous

Querist : Anonymous (Querist)

13 August 2014 i am dealing only in CLOTHES(exempted from vat) retail having turnover approx 12 lakhs..
so, i wants to know weather registration in up vat is required or not??

Querist : Anonymous

Querist : Anonymous (Querist)

26 August 2014 Plz tell me..

Aashok Kumar Sharma

Aashok Kumar Sharma (Expert)
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02 August 2025 Great question! Here’s the straightforward answer regarding your situation with UP VAT and clothes retail:

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### UP VAT Registration for Clothes (Exempted Items) with Turnover ₹12 Lakhs

#### 1. **Are Clothes Exempt from VAT?**

* In UP, many basic clothing items may be **exempt or zero-rated** under UP VAT, but it depends on the type of clothes (e.g., readymade garments, fabrics, branded clothes, etc.).
* You should check the **UP VAT Schedule** or consult the VAT department to confirm if your specific clothes are exempt.

#### 2. **Is Registration Mandatory?**

* As per UP VAT rules, **registration is mandatory if your turnover exceeds the prescribed threshold** — typically ₹5 Lakhs (this may vary slightly depending on the year and updates).
* However, **even if you deal exclusively in exempted goods, if your turnover exceeds the threshold, you must register**.

#### 3. **What If You Don’t Register?**

* Not registering despite exceeding the threshold can lead to **penalties and legal issues**.
* Being registered also allows you to avail of **input tax credit (if applicable)** and issue **valid VAT invoices**.

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### **Summary for You:**

| Situation | Registration Required? |
| -------------------------------------------- | --------------------------------- |
| Turnover below ₹5 Lakhs | No |
| Turnover above ₹5 Lakhs, only exempted goods | Yes, registration **is required** |

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### Recommendation:

* Since your turnover is approx **₹12 Lakhs**, you **should register under UP VAT**, even if your goods are exempt.
* Registration is important for legal compliance and business credibility.

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