Sales Tax Returns
Sales Tax Returns – Classic Partners LLP
Classic Partner – LLP Compliance & Advisory Services
What is Sales Tax Returns ?
Before the introduction of Goods and Services Tax (GST) in July 2017, businesses in India were required to file Sales Tax / VAT Returns under the respective State VAT Acts. Even though VAT has now been subsumed under GST, certain legacy cases, pending assessments, and transitional credits may still require businesses to file or reconcile Sales Tax Returns.
Sales Tax Return filing involves the periodic disclosure of sales, purchases, input tax credits, and VAT liability with the respective State Sales Tax / VAT department. Timely filing ensures compliance, avoids penalties, and allows businesses to claim eligible input credits.
Who Needs to File Sales Tax Returns?
Manufacturers, traders, and dealers registered under VAT laws.
Businesses with turnover exceeding state-specific thresholds (generally ₹5–10 lakhs).
Entities carrying forward pre-GST transitional VAT liabilities or credits.
Businesses undergoing legacy VAT assessments or audits.
Documents & Details Required
VAT / CST Registration Certificate (TIN).
Sales & purchase invoices.
Input tax credit claim records.
Credit/Debit notes issued during the period.
Stock register and inventory statements.
Bank statements for reconciliation.
Process of Sales Tax Return Filing
Compile Sales & Purchase Data – From books of accounts and invoices.
Calculate Net VAT Liability – After adjusting eligible input credits.
Prepare Return – Using state-specific VAT return forms.
File Return – Online or offline with the respective State VAT department.
Pay Tax Liability – Before due date to avoid interest.
Maintain Records – For scrutiny or future assessments.
Due Dates
Monthly Returns – 20th of the following month (for most states).
Quarterly Returns – For small dealers in certain states.
Annual Returns – Mandatory summary filing for all VAT dealers.
Penalties for Non-Compliance
Late filing fee – Varies by state, generally ₹100–₹500 per day.
Interest on unpaid tax – 1% to 1.5% per month.
Disallowance of input credits for non-filing.
Penalty for incorrect filing – Ranging from 10% to 50% of tax due.
Why Choose Classic Partner?
Expertise in handling legacy VAT/Sales Tax compliances.
Assistance with VAT audits, assessments, and appeals.
Support for transitional VAT-GST reconciliation.
Guidance for state-specific return formats & filings.
Professional Chartered Accountants ensuring accurate and timely compliance.
Get Professional Help with Sales Tax Return Filing
Classic Partner provides end-to-end assistance for VAT / Sales Tax returns, pending assessments, and transitional filings to ensure full compliance and peace of mind.
