Consumption/VAT/Sales Tax in India

Overview by
Nature of the Tax
Value Added Tax (VAT) and Sale taxes, depending on the State. For more details, consult the business portal of India. A nationwide Goods and Services Tax (GST) whose rate will be around 14-16% is expected to be launched in April 2012.
Standard Rate
Reduced Tax Rate
The lower rates are 4% (agriculture and industrial inputs) and 1% (gold and silver ornaments).
Exclusion From Taxation
The State is not authorized to impose state VAT on the imports of goods into India or exported out of India.
Method of Calculation, Declaration and Settlement
The interstate sales tax levied by the central government is known as central sales tax (CST) and intra state sales tax levied by respective state governments is known as local sales tax (LST/VAT). VAT has replaced existing local sales tax laws in almost all the states of India.
For details consult the Income Tax Department.
Other Consumption Taxes
Service Tax (12%) applies to more than 100 services. For details visit the web site: Service Tax.
Excise Duty: 8% (on drugs, pharmaceuticals, cans, paper, Water filtration and purification devices, etc), 12% (small cars, packaged software), 14% (cement) and 24%.
For further information consult the Central Board of excise and Customs.

Any Comments About This Content? Report It to Us.

Read more See less

No content has been posted to this folder yet.
Be the first to feature your expertise related to Consumption/VAT/Sales Tax in India!

  • Post any content you may have that features your expertise, such as a text article with business tips, presentation, market report, etc
  • By sharing your knowledge you gain more visibility for your profile not only on but across the web

Post your content now by simply clicking on the button below.

Check these folders already populated with content posted by other users:

Click here to find out more about key benefits and instructions for contributing to the site.


Post any content you may have that features your expertise and offers valuable information to the international trade community.

The more informative content you post the more visible your will be, as your valuable content will link directly to your profile.

Check these sample pages for illustration: