Vat rate

This query is : Resolved

Share Report Follow Query Ask a Query

Querist : Anonymous

Querist : Anonymous (Querist)

16 July 2012 Hi,

Can anyone tell me what is the VAT rate for handbags made?

RENGARAJ R.K

RENGARAJ R.K (Expert)
Follow

23 July 2012 WHICH STATE VAT RATE YOU WANT? ALSO WHEN A QUERY IS RAISED, KINDLY INDICATE THE MATERIAL USED IN THE PRODUCT.

FOR E.G, HAND BAGS MADE OF LEATHER IS DIFFERENT FROM BAND BAGS MADE OF PLASTIC MATERIALS OR COTTON CLOTH MATERIAL, ETC.,

KINDLY TELL US YOUR STATE AND MATERIAL USED IN THE HAND BAGS,

Querist : Anonymous

Querist : Anonymous (Querist)

23 July 2012 Sure. Will take care henceforth. I would like to have vat registration for the state of maharashtra and for cst as well. The handbag shall be made of leather and cotton fabric material. Basically the sales would be made online and therefore registration needs to be done for MVAT and CST.
Kindly advise

Asha Kanta Sharma

Asha Kanta Sharma (Expert)
Follow

03 August 2025 Thanks for providing the clarification.
You're referring to VAT registration and applicable VAT rate for handbags made of leather and cotton fabric in the state of Maharashtra, as of July 2012.

✅ VAT Rate in Maharashtra (as of July 2012):
👜 Handbags made of leather or cotton fabric:
Likely classified under Schedule C of the MVAT Act, 2002
VAT Rate: 5% + 10% surcharge = 5.5%
📌 Relevant Entry:
Schedule C covered cotton fabrics, leather goods, and related articles.
If the handbag is primarily leather or cotton fabric, and not synthetic or plastic, it would fall under this concessional rate.
⚠️ But:
If the handbag is made of plastic, synthetic, or other man-made materials, it might be taxed at the general rate of 12.5% (Schedule E).
🧾 MVAT + CST Registration (as of 2012):
Since you're selling online across states, you needed both:
MVAT Registration (for intra-state sales in Maharashtra)
CST Registration (for inter-state sales, prior to GST)
✅ Registration Steps (2012 - Pre-GST):
Apply online at the Maharashtra Sales Tax Department website.
Submit:
PAN Card
Address proof of business
Proof of ownership/tenancy
Bank account details
Photographs and ID proof of proprietor/partners/directors
Security Deposit or surety was often required.
After verification, you'd receive a TIN (Taxpayer Identification Number) for MVAT and CST.
🗂 Summary:
Item Details
Product Handbags (leather + cotton)
State Maharashtra
Likely VAT Schedule Schedule C
VAT Rate 5.5% (5% + 10% surcharge)
CST Applicability Yes, for interstate sales
Registration MVAT + CST both needed

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now