02 August 2025
Under the **erstwhile Uttar Pradesh VAT regime**, **Form 38** was used to facilitate the **import of goods into UP** and ensure tax compliance. It was issued either in **manual (old format)** or **online (new format)** versions.
---
### 🔴 1. **Manual Form 38 (Old Format)**
**Submission Timeline:**
* There was **no statutory deadline** explicitly mentioned in the UP VAT Act. * However, **best practice** (as interpreted by commercial tax officers) was:
* Submit the **used Form 38** along with **returns** or as and when **assessed/audited**. * Maintain the **counterfoil** and produce when demanded.
**Failure to submit:**
* Could result in the form being treated as **misused or invalid**. * Might trigger **penalty proceedings**, or tax being assessed at the **full rate** without concessional benefits.
---
### 🟢 2. **Online Form 38 (Post-2013 Format)**
**Submission Requirement:**
* **No physical submission** required to the department unless:
* Specifically **demanded during assessment or audit**, or * **Goods seized**, or discrepancy noticed at check-post.
**Validity of Form 38 (Online)**:
* Usually valid for a specific **transaction/trip** and should be **used promptly** (within 15–30 days). * The **e-generated form** was **auto-submitted in the system**, but must be preserved digitally or in print for **record-keeping**.
---
### ✅ Best Practices:
| Format | Submission to Authority | Suggested Timeline | Notes | | -------------- | ----------------------- | -------------------------- | -------------------------- | | Manual Form 38 | Yes, upon request/audit | Within same financial year | Keep counterfoil securely | | Online Form 38 | Not routinely required | Use within 15–30 days | Keep printout or soft copy |
---
### 🔎 Penalty for Non-Compliance:
* If Form 38 not properly submitted or available when required:
* Goods may be treated as **illegally imported**. * Tax assessed at full rate + **penalty u/s 48 or 54 UP VAT Act**. * Penalty can go up to **₹5,000 per form or per transaction**.
CAclubindia
