India changes VAT registration process

Mon 10th Jun 2013

To help improve Indian VAT compliance, the Finance Ministry has raised the VAT registration threshold.

The current Indian VAT registration threshold is being increased from 5 Lakh to 10 Lakh until September 2013.  This new measure, in effect a tax amnesty, includes no charges on arrears for previously undisclosed VAT.

The Indian VAT system is highly complex, with overlapping Indian Service Tax, Indian VAT, Indian Service Tax and Indian CENVAT.  There is also a recently announced Indian Service Tax amnesty.