Sales tax, vat

1. Yes, you are required to register with VAT authorities. If you have interstate (one state to another) transactions, then you are required to register under CST too. Both VAT & CST registration can be done together.
2. Even as HUF, the total income will be taxed under HUF name only as per applicable rate of tax (as you have already specified). Receipt from HUF by members will not be taxed again in the hands of the members of HUF.

Dear Poornima - I do not have sufficient knowlege about HUF can you please help with a simple calculation.

Suppose I have net income of 25 Lakhs in current financial year and we have 5 memmbers in HUF (my father, mother, brother and me) so how will be tax calculation made. I mean net income will be devided in 4 members or we need to fill ITR for HUF seperately with this income.

Thank you in advance.

HUF will be taxed as a separate entity. Suppose you have an income of Rs.25 lacs (family income), the entire 25 lacs will be taxed under HUF name according to the slab rate applicable. Share of profit from HUF received by members is exempt in the hands of the receiver. For more details on HUF: https://www.charteredclub.com/how-to-save-taxes-by-forming-huf/