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File VAT/Service Tax Returns

GST Registration Enrollment

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Returns Under VAT

Value added tax is a type of tax levied on sale and purchase of goods and services. Though VAT is borne by the final consumer of goods and services, it’s collected and submitted by a seller of product to the state government. That is the reason for it being categorized as an indirect form of tax. That means, value added tax returns are filed by seller of goods and services.

Benefits of Filing the Value Added Tax Returns

  • An enterprise is entitled to value added tax deduction for procurement of raw materials for the production.
  • It shows the credibility of your business. Being law compliant gives your business the image of a law abiding large entity.
  • Entities are eligible to claim the refund of value added tax.
  • Makes your business more transparent and ensures that you follow business ethics.
  • Your contribution towards advancement of nation makes you a responsible citizen.
  • Filing the VAT return helps you avoid penalty.

Return Filling

  • Every person liable to pay service tax has to submit half yearly return in form ST-3 within 25 days of the end of the half-year, as per rule 7 of Service Tax Rules, 1994, read with section 70(1) of Finance Act, 1994. Similarly, Input Service Distributor (ISD) is also required to file half yearly return, even if he is not liable to pay service tax.
  • Steps for preparing and filing returns: – E-filing of return is mandatory w.e.f. 1st October, 2011 in respect of all assessees as per Rule 7(3) of Service Tax Rules, 1994. The assesses can electronically file statutory returns of Central Excise and Service Tax either online or through off-line return utilities which can be filled-in-off-line and uploaded to the system through the internet. Few steps for filing of returns are mentioned below:
    • Returns can be prepared and filed online by selecting the ‘’File Return’’ option under RET module after logging into the ACES.
    • Returns can also be prepared and filed off-line. The Assessee needs to download the Offline return preparation utility available at (Under Download) and prepare the return offline using this utility.
    • Selects RET from the main menu and uploads the return.
    • Returns uploaded through this procedure are validated by the ACES before acceptance into the system which may take up to one business day.
    • The status will appear as “uploaded” meaning under process by ACES, “Filed” meaning successfully accepted by the system or “Rejected” meaning the ACES has rejected the return due to validation error. The rejected returns can be resubmitted after corrections.
    • On the successful submission of a return, an acknowledgment with a number in the format ‘’registration number_Type of return_Month and Year of the return’’ will be shown.
    • The Service Tax revised returns can be filed once as per rules up to 90 days from the date of filing the initial return.
    • There is no provision for submission of revised return after 90 days. In such cases, if assessee finds that he has made some mistake, he should pay the amount by GAR-7 challan with Interest and inform department suitably.
  • Responsibility of the Assessee: – It is the legal responsibility of the assessees, who are required to file returns, to file it within the due date as prescribed under law. It may, however, be noted that merely uploading the returns will not be considered as returns having been filed with the department. A return will be considered as filed, when the same is successfully accepted by the application as “Filed” and the relevant date for determining the date of filing of return will be the date of uploading of such successfully “filed” returns. In case a return is “rejected” by the application, the date of uploading of the rejected return will not be considered as the date of filing, rather the date of uploading of the successfully “filed”, return (after the assessee carries out necessary corrections and uploads it again) will be considered as the actual date of filing.

Even if there was no business during the period, assessee will have to file ‘NIL’ return as long as registration certificate is valid.