The rajasthan value added tax act, 2003

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THE RAJASTHAN VALUE ADDED TAX ACT, 2003 
(Updated up to 27.07.2020) 
 
LAW (LEGISLATIVE DRAFTING) DEPARTMENT 
(Group–II)   
NOTIFICATION 
Jaipur, March 31, 2003 
No. F. 2(16) Vidhi/2/2003.– In pursuance of clause (3) of Article 348 of the Constitution of 
India, the Governor is pleased to authorize the publication in the Rajasthan Gazette of the 
following translation in the English language of the Rajasthan Moolya Parivardhit Vikraya 
Kar Adhiniyam, 2003 (2003 Ka Adhiniyam Sankhyank 4):– 
 
"THE RAJASTHAN VALUE ADDED TAX ACT, 2003" 
(Act No. 4 of 2003) 
(Received the assent of the Governor on the 30th day of March, 2003)  
An 
Act 
to consolidate and amend the law relating to the levy of tax on sale or purchase of goods and to 
introduce value added system of taxation in the State of Rajasthan. 
Be it enacted by the Rajasthan State Legislature in the Fifty–fourth Year of the Republic 
of India as follows: – 
CHAPTER– I 
PRELIMINARY 
 
1. Short title, extent and  commencement. – (1) This Act may be called 1["the Rajasthan 
Value Added Tax Act, 2003."] 
(2) [It extends to the whole of the State of Rajasthan. 
(3) It shall come into force on such date]2 as the State Government may by notification 
in the Official Gazette appoint and the State Government may appoint different dates for 
the commencement of the different provisions of this Act. 
2. Definitions. – In this Act, unless the subject or context otherwise requires, – 
(1) “appellate authority” means a person not below the rank of the Deputy 
Commissioner authorized as such by the State Government; 
(2) “assessing authority” means any officer not below the rank of Assistant Commercial 
Taxes Officer, authorized as such by the Commissioner; 
(3) “assessment” means determination of liability under this Act; 
(4) "auditor" means any officer not below the rank of Assistant Commercial Taxes 
Officer authorized as such by the Commissioner; 
(5) “awarder” means any person at whose instance  or for whose benefit a works contract 
is executed; 
(6) “business” includes– 
(i) any trade, commerce or manufacture; or 
(ii) any adventure or concern in the nature of trade, commerce or manufacture – 
whether or not such trade, commerce, manufacture, adventure or concern is 
carried on with a motive to make gain or profit, and whether or not any gain or 
profit accrues from such trade, commerce, manufacture, adventure or concern; or 
                                                      
1  Subs. by Act No. 4 of 2006 w.e.f. 01.04.2006 
2  Ist day of April, 2006 vide Notification No. F.12(63) FD/Tax/2005-154 dated 31.03.2006. 
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(iii) any transaction in connection with or incidental or ancillary to such trade, 
commerce, manufacture, adventure or concern; or 
(iv) any transaction in connection with or incidental or ancillary or consequential to 
the commencement or closure of such business; or 
(v) any occasional transaction in the nature of such trade, commerce, manufacture, 
adventure or concern whether or not there is volume, frequency, continuity or 
regularity of such transaction; 
   (7) 1["capital goods" means plant and machinery including parts and accessories thereof, 
meant for use in manufacture unless otherwise notified by th e State Government from 
time to time in the Official Gazette;”] 
 2[Explanation. - For the purpose of this clause, generating set for generation of 
electrical energy to be used in manufacturing shall be treated as capital goods.] 
(8) “casual trader” means a person who, whether as principal, agent or in any other 
capacity, has occasional transactions of a business nature involving buying, selling, 
supplying or distributing of such goods as may be notified by the State Government 
whether for cash or deferred pa yment or for commission or remuneration or other 
valuable consideration; 
(9) “Commissioner” means a person appointed by the State Government to be the 
Commissioner of Commercial Taxes Department and shall include Additional 
Commissioner of Commercial Taxes Department; 
(10) “contractor” means any person executing a works contract and includes a sub – 
contractor, or a person to whom contract has been awarded under section 77; 
(11) “dealer” means any person, who carries on business in any capacity, of buying, 
selling, supplying or distributing goods directly or otherwise, or making purchases or 
sales as defined in clause (35) for himself or others, whether for cash or deferred 
payment, or for commission, remuneration or other valuable consideration and shall  
include– 
(i) a factor, broker, commission agent, del credere agent or any other mercantile 
agent, by whatever name called, and whether of the same description as 
hereinbefore mentioned or not, who carries on the business of buying, selling, 
supplying or distributing an y goods belonging to any principal whether disclosed 
or not; 
(ii) an auctioneer, who sells or auctions goods belonging to any principal, whether 
disclosed or not and whether the offer of the intending purchaser is accepted by 
him or by the principal or a nominee of the principal; 
(iii) a manager or an agent, of a non –resident dealer who buys, sells, supplies or 
distributes goods in the State belonging to such dealer; 
(iv) any society, club, trust or other association, whether incorporated or not, which 
buys goods from or sells goods to its members; 
(v) a casual trader; 
(vi) the Central or any State Government or any of their Departments or offices 
which, whether or not in the course of business, buy, sell, supply or distribute 
goods directly or otherwise, whether for cash or deferr ed payment or for 
commission, remuneration or other valuable consideration; and 
(vii) any trading, commercial or financial establishment including a bank, an insurance 
company, a transport company and the like which, whether or not in the course of 
its business,  buys, sells, supplies or distributes goods, directly or otherwise, 
whether for cash or deferred payment, commission, remuneration or other 
valuable consideration; 
Explanation – A person, who sells agricultural or horticultural produce, grown by 
himself or  grown on any land in which he has an interest as owner or tenant as 
defined in the Rajasthan Tenancy Act, 1955 (Act No. 3 of 1955), shall not be deemed 
to be a dealer in respect of such sales within the meaning of this clause; 
                                                      
1  Subs. by Act No. 4 of 2006 w.e.f. 01.04.2006. 
2  Inserted by Rajasthan Finance Act,2016 (Act No. 5 of 2016) w.e.f. 09.04.2016. 
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(12)“Deputy Commissioner (Administration)”, "Assistant Commissioner", 
"Commercial Taxes Officer", "Assistant Commercial Taxes Officer" or "Junior 
Commercial Taxes Officer" means the person holding office with that designation 
under the State Government; 
(13) “exempted goods” means any goods exempted from tax in accordance with the 
provisions of this Act; 
(14)“firm”, “partner” and “partnership” shall have the meanings respectively assigned to 
them in the Indian Partnership Act, 1932 (Central Act No. 9 of 1932); 
(15) “goods” means all kinds of movable property, whether tangible or intangible, other 
than newspapers, money, actionable claims, stocks, shares and securities, and includes 
materials, articles and commodities used in any form in the execution of works 
contract, livestock and all oth er things attached to or forming part of the land which is 
agreed to be severed before sale or under the contract of sale; 
(16) “importer” means a dealer who brings or causes to be brought into the State any 
goods or to whom any goods are dispatched from any pl ace outside the State, for the 
purpose of sale or use in manufacturing and processing of goods for sale; 
(17) “input tax” means tax paid or payable by a registered dealer in the course of 
business, on the purchase of any goods made from a registered dealer; 
(18) “invoice” means a document containing such particulars as may be prescribed; 
(19) “lease” means any agreement or arrangement whereby the right to use any goods for 
any purpose is transferred by one person to another whether or not for a specified 
period for cas h, deferred payment or other valuable consideration without the transfer 
of ownership, and includes a sub –lease but does not include any transfer on hire 
purchase or any system of payment by installments; 
(20) “lessee” means any person to whom the right to use any goods for any purpose is 
transferred under a lease; 
(21) “lessor” means any person by whom the right to use any goods for any purpose is 
transferred under a lease; 
(22) “manufacture” includes every processing of goods which brings into existence a 
commercially different and distinct commodity but shall not include such processing as 
may be notified by the State Government; 
(23) “non–resident dealer” means a dealer who effects purchases or sales of any goods in 
the State but who has no fixed place of business or residence in the State; 
(24) “output tax” means the tax charged or chargeable under this Act by a registered 
dealer in respect of the sale of goods in the course of his business; 
(25) “person” means any individual or association or body of individuals and includes a  
Hindu Undivided Family or Joint Family, a firm, a company whether incorporated or 
not, a co –operative society, a trust, a club, an institution, an agency, a corporation, a 
local authority, a Department of the Government or other artificial or juridical person; 
(26) “place of business” means any place in the State of Rajasthan where a dealer 
purchases or sells goods and includes,– 
(a) any warehouse, go down or other place where the dealer stores goods; 
(b) any place where the dealer processes, produces or manufactures goods; 
(c) any place where the dealer keeps his accounts, registers and documents; 
(d) any vehicle or carrier wherein the goods are stored or business is carried on; 
   1[(e) any warehouse, railway station, railway goods yard, parcel office, or any other 
place where goods for transportation in the course of business or  otherwise are 
kept by dealers;] 
Explanation.– The dealer shall declare one of the places of business as his “prin cipal 
place of business” in the application for registration, and his final accounts, annual 
statements, registers and documents, whether maintained manually or electronically, 
shall necessarily be kept at such place; 
                                                      
1  Inserted by Rajasthan Finance Act No. 15 of 2011 w.e.f. 15.04.2011. 
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(27) “prescribed” means prescribed by rules made under this Act; 
(28) “purchase price” means the amount paid or payable by a dealer as valuable 
consideration for the purchase of goods including all ancillary and incidental expenses 
and statutory levies payable but excluding the tax payable under this Act; 
(29) “raw material” means goods used as an ingredient in the manufacture of other goods 
and includes processing material, consumables, preservative, fuel and lubricant 
required for the process of manufacture; 
(30) “registered dealer” means a dealer registered or deemed to have been registered 
under the provisions of this Act; 
(31) “repealed Act” means the Rajasthan Sales Tax Act, 1994 (Act No. 22 of 1995); 
(32) “resale” means sale of goods without performing any operation on them which 
amounts to or results in a manufacture; 
(33) “reverse tax” means that part of the input tax for which credit has been availed in 
contravention of the provisions of section 18; 
(34) “rules" means the rules made under this Act; 
(35) “sale” with all its grammatical variations and cognate expressions means every  
transfer of property in goods by one person to another for cash, deferred payment or 
other valuable consideration and includes– 
(i) a transfer, otherwise than in pursuance of a contract, of property in goods for 
cash, deferred payment or other valuable consideration; 
(ii) a transfer of property in goods (whether as goods or in some other form) involved 
in the execution of a works contract; 
(iii) any delivery of goods on hire –purchase or other system of payment by 
installments; 
(iv) a transfer of the right to use goods for any purpose (whether or not for a specified 
period) for cash, deferred payment or other valuable consideration; 
(v) a supply of goods by an unincorporated association or body of persons to a 
member thereof for cash, deferred payment or other valuable consideration; and 
(vi) a supply, by way of or as part of any service or in any other manner whatsoever, 
of goods, being food or any other article for human consumption or any drink 
(whether or not intoxicating), where such supply is for cash, deferred payment or 
other valuable consideration, 
and such transfer, delivery or supply shall be deemed to be a sale and the word 
“purchase” or “buy” shall be construed accordingly; 
Explanation.– Notwithstanding anything contained in this Act, where any goods are 
sold in packing , the packing material in such case shall be deemed to have been sold 
with the goods; 
(36) “sale price” means the amount paid or payable to a dealer as consideration for the 
sale of any goods less any sum allowed by way of any kind of discount or rebate 
according to the practice normally prevailing in the trade, but inclusive of any statutory 
levy or any sum charged for anything done by the dealer in respect of the goods or 
services rendered at the time of or before the delivery thereof, except the tax imposed 
under this Act; 
Explanation I. – In the case of a sale by hire purchase agreement, the prevailing 
market price of the goods on the date on which such goods are delivered to the buyer 
under such agreement, shall be deemed to be the sale price of such goods; 
Explanation II. – Cash or trade discount at the time of sale as evident from the invoice 
shall be excluded from the sale price but any ex post facto grant of discounts or 
incentives or rebates or rewards and the like shall not be excluded; 
Explanation III. – Where according to the terms of a contract, the cost of freight and 
other expenses in respect of the transportation of goods are incurred by the dealer for or 
on behalf of the buyer, such cost of freight and other expenses shall not be included in 
the sale price, if charged separately in the invoice; 
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1[Explanation IV.- The amount received or receivable by oil companies for the sale of 
diesel and petrol to the retail outlets in the State shall be deemed to be equivalent to the 
price on which the retail outlets sell these commodities to the consumer;].  
2[“(36A) "Schedule" means a Schedule appended to this Act; 
(36B) "Special Economic Zone" shall have the same meaning as has been assigned to it in 
clause (za) of section 2 of the Special Economic Zones Act, 2005 (Central Act No. 28 of 
2005);”] 
(37) “tax” means any tax or other l evy by any name leviable under the provisions of 
this Act; 
(38) “Tax Board” means Rajasthan Tax Board constituted under section 88; 
(39) “tax period” means the period as may be notified by the State Government for 
deposit of tax payable under this Act; 
(40)“taxable turnover” means, that part of turnover, as may be determined after making 
such deductions from the total turnover as may be prescribed on which a dealer shall be 
liable to pay tax under this Act ; 
(41) “turnover” means the aggregate amount of sale price received or receivable by a 
dealer including purchase price of the goods which are subject to tax under sub –section 
(2) of section 4 3[“but shall exclude the sale price or part of sale price, if any, in respect 
of sales of goods which were purchased in the State by the dealer upon payment of tax 
on the maximum retail price of such goods or, where tax on maximum retail price of 
such goods were paid in the State on an earlier occasion”;] 
(42) “VAT invoice” means an invoice containing such particulars as may be prescribed, 
and issued by a dealer authorized under this Act; 
(43) “vehicle or carrier” means any mode of transportation including human being or 
animal carrying goods from one place to another; 
   (44) 4[“works contract ” means a contract for carrying out any work which includes 
assembling, construction, building, altering, manufacturing, processing, fabricating, 
erection, installation, fitting out, improvement, repair or commissioning of any 
movable or immovable property;] 
(45) “year” means the period commencing from 1st April and ending on 31st March. 
 
CHAPTER – II 
INCIDENCE AND LEVY OF TAX 
 
(1) Incidence of tax. – (1) Subject to the provisions of this Act, every dealer - 
(a) who is an importer of goods; or 
(b) who is a manufacturer of goods and whose annual turnover exceeds 5[rupees five 
lacs]; or 
(c) whose annual turnover exceeds 6["rupees ten lacs",] shall be liable to pay tax under 
this Act. 
(2) 7[Notwithstanding anything contained in sub -section (1) a dealer other than those 
specified in clause (a) of sub -section (1) or the dealer or class of dealers as may be 
notified by the State Government, who purchases goods from a registered dealer of the 
State and sells, such goods or goods manufactured from such goods within the State, 
may opt for payment of tax on his turnover excluding the turnover of the goods 
specified in Schedule I, at the rate as may be notified under sub-section (3) of section 4, 
                                                      
1.  Ins. by Finance Bill No.13 of 2019 
2 . Ins. by Act No. 4 of  2006 w.e.f. 01.04.2006. 
3  Subs. by Act No. 15 of 2011 w.e.f. 15.04.2011. 
4  Ins. by Act No. 4 of 2006 w.e.f. 01.04.2006. 
5. Subs by Rajasthan Finance Act, 2014 w.e.f. 31.07.2014. 
6. Subs by Rajasthan Finance Act, 2010 w.e.f. 09.03.2010. 
7  Subs by Rajasthan Finance Act, 2017 w.e.f. 31.03.2017. 
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subject to the condition that annual turnover of such dealer does not exceed]- 
(i) rupees fifty lacs, in case of a dealer specified in clause (b) of sub-section (1); and 
(ii) rupees seventy five lacs, in case of other dealers.”. 
       (3)  Notwithstanding anything contained in sub-section (1) and (2) every casual trader shall 
be liable to pay tax under this Act.  
 
(4) Notwithstanding anything contained in sub –sections (1) and (2) every person, other 
than a casual trader or a registered dealer, who carries on business temporarily for a 
period not exceeding one hundred twenty days in a year, shall be liable to pay tax 
under this Act in the manner as may be prescribed. 
(5) A dealer registered under the Central Sales Tax Act, 1956 (Central Act No.74 of 1956) 
who is not liable to pay tax under sub–sections (1) to (4), shall nevertheless be liable to 
pay tax in accordance with the provisions of this Act. 
(6) Notwithstanding anything contained in this Act, a dealer registered under this Act shall 
so long as his certificate of registration remains in force, be liable to pay tax, 
irrespective of his turnover. 
1[4. Levy of tax and its rate . – (1) Subject to the other provisions of this Act and the 
provisions of the Central Sales Tax Act, 1956 (Central Act No. 74 of 1956), the tax payable by 
a dealer under this Act, shall be at such point or points, as  may be prescribed, in the series of 
sales by successive dealers and shall be levied on the taxable turnover of sale of goods 
specified in Schedule III to Schedule VI at the rate mentioned against each of such goods in 
the said Schedules. 
(2) Every dealer who in the course of his business purchases any good other than exempted 
goods in the circumstances in which no tax under sub –section (1) is payable on the sale price 
of such goods and the goods are disposed off for the purpose other than those specified in 
clause (a) to (g) of sub –section (1) of section 18, shall be liable to pay tax on the purchase 
price of such goods at the rate mentioned against each of such goods in Schedule –III to 
Schedule VI of the Act. 
(3) Notwithstanding anything contained in sub –section ( 1), the tax payable by the dealer 
covered by sub–section (2) of section 3, shall be levied at the rate not exceeding two percent 
on the turnover, as may be notified by the State  Government. Provided that the State 
Government may notify different rates for different class of dealers. 
 
(4) Where any goods are sold packed in some material, whether charged for separately or not, 
notwithstanding anything contained in sub –section (1), the tax liability of and the rate of tax 
on the packing material shall be according  to the tax liability of and the rate of tax on the 
goods packed therein. 
(5) Subject to such conditions as it may impose, the State Government may, if it considers 
necessary so to do in the public interest, by notification in the Official Gazette, add to or omit 
from, or otherwise amend or modify the Schedules, prospectively or retrospectively, or reduce 
the rate of tax payable in respect of any goods and thereupon the Schedule shall be deemed to 
have been amended accordingly. 
(6) Every notification issued under sub–section (5) shall be laid, as soon as may be after it is 
so issued, before the House of the State Legislature, while it is in session for period of not less 
than thirty days which may comprised in one session or in two successive sessions 2["and if 
before the expiry of the sessions" ] in which it is so laid or of the session immediately 
following the House of the State Legislature makes any modification in such notification or 
resolves that any such notification should not be issued, such notification th ereafter have 
effect only in such modified form or be of no effect, as the case may be, so however, that any 
such modification or annulment shall be without prejudice to the validity of anything 
previously done thereunder. 
(7) Notwithstanding anything contained in this Act, any registered dealer, who imports into, 
or manufactures in, the State such goods as may be notified by the State Government, may, at 
his option, pay, in lieu of the tax payable by him on sale price of such goods under this Act, a 
tax at full rate on the maximum retail price of such goods in the manner as may be prescribed: 
Provided that where a dealer has purchased any goods – 
                                                      
1   Subs. by the Act No. 4 w.e.f. 01.04.2006. 
2.  Subs. by the Rajasthan Finance Act, 2007 (Act No. 4) w.e.f. 09.03.2007. 
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(a) from aforesaid importer or manufacturer upon payment of tax on the maximum retail 
price of such goods; or 
(b) from another registered dealer where tax on the maximum retail price of such goods 
was paid in the State on an earlier occasion, 
the purchasing dealer, irrespective of whether he is registered or not, while making resale of 
such goods in the State, shall, notwi thstanding anything contained elsewhere in the Act, be 
entitled to recover from the buyer the amount of tax paid by him at the time of purchase of 
such goods under such conditions and restrictions, and in such manner, and within such time, 
as may be prescribed:] 
1[“Provided further that a dealer who opts payment of tax under this sub -section shall not 
allow any trade discount or incentive in terms of quantity of goods in relation to any sale of 
goods covered under this sub -section, affected by him, for the purpose of calculating his tax 
liability.”] 
5.Payment of lump sum in lieu of tax. – (1) Notwithstanding anyth ing contained in this 
Act, 2[***] the State Government may provide an option for payment of tax in a lump sum 
in respect of sales of such class of goods or by such class of dealers on such terms and 
conditions as may be notified in the Official Gazette. 
(2) The tax in lump sum specified in sub –section (1) shall not exceed the limit of maximum 
tax liability as provided in sub–section (1) of section 4. 
6. Levy of tax by weight, volume, measurement or unit on certain goods. – (1) 
Notwithstanding anything contained in sections 3 and 4, the State Government may fix the 
amount of tax payable on the sale or purchase of certain goods or a class of goods in respe ct of 
a specified area or whole of the State, on the basis of weight, volume, measurement or unit, on 
such terms and conditions, as may be notified in the Official Gazette. 
(2) The amount of tax payable under sub –section (1) may be fixed with reference to the 
types of vehicles or carriers transporting the said goods, and also with reference to the quality  
thereof. 
(3) The amount of tax notified under sub –sections (1) and (2) shall not exceed the amount 
of maximum limit of tax liability as provided in sub–section (1) of section 4. 
(4) The State Government may, by an order published in the Official Gazette and subject 
to such terms and conditions as may be specified in such order, delegate its power under this 
section to the Commissioner. 
7. Levy of tax on livestock. – (1) Notwithstanding anything contained in sections 3, 4 and 6, 
tax on the sale or purchase of live -stock at such rate not exceeding ten percent of the sale or 
purchase price, as the case may be, of such live -stock and at such point of sale or purchase, as 
may b e notified by the State Government, shall be payable by every person, who sells or 
purchases live-stock in the State and the provisions of section 28 shall mutatis mutandis apply 
to such person. 
(2) Notwithstanding anything contained in sub –section (1), in respect of live –stock of such 
class as may be specified by the State Government by notification in the Official Gazette, tax 
shall be payable at such rate per head not exceeding five hundred rupees as may be notified. 
(3) Different rates of percentage of price, or different rates per head may be notified by the 
State Government under sub–sections (1) and (2) for different classes of livestock. 
 3[ “7A. Levy of tax on livestock . – (1) Notwithstanding anything contained in this Act, there 
shall be levied a surcharge from such date and at such rate not exceeding twenty per cent of the 
amount of tax, or any sum in lieu of tax, leviable on sale or purchase of such goods, as may be 
notified by the State Government, and shall be paid by the registered dealers. 
(2) The provisions as they are applicable to the tax payable under this Act, shall, so far as 
may be, apply in relation to surcharge payable under sub-section (1). 
(3) The proceeds of surcharge mentioned under sub -section (1) shall be utilized for the 
purpose of conservation and propagation of cow and its progeny.”] 
 
                                                      
1.  Added by Rajasthan Finance Act, 2011 w.e.f. 15.04.2011. 
2  Deleted by Rajasthan Value Added Tax (Amedment) Act No. 3 dated 09.04.2007 w.e.f. 01.04.2006.  
3  Ins. by Finance Bill No. 20 of 2018 
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1["8. Exemption of tax. – (1) The goods specified in the Schedule –I shall be exempt from tax, 
subject to such conditions as may be specified therein. 
(2) Subject to such conditions as it may impose, the State  Government may, if it considers 
necessary so to do in the public interest, by notification in the Official Gazette, add to or omit 
from, or otherwise amend or modify the Schedule –I, prospectively or retrospectively, and 
thereupon the Schedule shall be deemed to have been amended accordingly. 
(3) The State Government in the public interest, by notification in the Official Gazette, may 
exempt whether prospectively or retrospectively from tax the sale or purchase by any person 
or class of persons as mentioned in Schedule–II, without any condition or with such condition 
as may be specified in the notification. 
2["(3A) Subject to such conditions as it may impose, the State Government may, if it considers 
necessary so to do in the public interest, by notification in the Official Gazette, add to or omit 
from, or otherwise amend or modify the Schedule –II, prospectively or retrospectively, and 
thereupon the Schedule shall be deemed to have been amended accordingly." 
(4) The State Government may, if it considers necessary in the public interest so to do, 
notify grant of exemption from payment of whole of tax payable under this Act in respect of 
any class of sales or purchases for the purpose of promoting the scheme of Special Economic 
Zones or promoting exports, subject to such conditions as may be laid down in the notification. 
(5) Every notification issued 3["under this section"] shall be laid, as soon as may be after it 
is so issued, before the House of the State Legislature, while it is in session for a period of not 
less than thirty days, which may comprised in one session or in two successive sessions 4["and 
if before the expiry of the sessions" ] in which it is so laid or of the session immediately 
following the House of the State Legislature makes any modification in such notification or 
resolves that 
any such notification should not be issued, such notification thereafter have effect only in such 
modified form or be of no effect, as the case may be, so however, that any such modification 
or annulment shall be without preju dice to the validity of anything previously done  
thereunder."  
9. Bar against collection of tax when not payable . – (1) No person who is not a registered 
dealer or no registered dealer who is not liable to pay tax in respect of any sale or purchase, 
shall collect on the sale of any goods any sum by way of tax from any other person. 
(2) No registered dealer shall collect any amount by way of tax in excess of the amount of 
tax payable by him under the provisions of this Act. 
(3) No dealer shall collect any sum by way of  tax in respect of sale of any goods on which, 
by virtue of section 8, no tax is payable. 
(4) Dealer opting for payment of lump sum amount in lieu of tax under section 5, or who is 
covered by sub–section (2) of section 3 shall not collect tax or any sum in lieu of tax. 
10. Burden of proof .– The burden of proving that any sale or purchase effected by any 
person is not liable to tax for any reason under this Act or to prove for entitlement of input tax 
credit on any purchases, shall be on such person. 
 
CHAPTER III 
REGISTRATION OF DEALERS 
  
11. Obligatory registration. – (1) Every dealer liable to pay tax under sub–section (1) or (5) 
of section 3 shall get himself registered by submitting an application to the authority 
competent to grant registration, in such form and in such manner and within such time as may 
be prescribed. 
(2) The authority competent to grant registration, after making such enquiry as it may 
consider necessary, may grant a certificate of registration in the prescribed form. 
(3) The certificate of registration shall be granted from the date he becomes liable to pay tax 
under section 3. 
                                                      
1  Subs by Act No. 4 of 2006 w.e.f. 01.04.2006. 
2  Ins. by Rajasthan Value Added Tax (Amedment) Act, 2007 dated 09.04.2007 w.e.f. 01.04.2006.  
3  Subs. by Rajasthan Value Added Tax (Amedment) Act No. 3 dated 09.04.2007 w.e.f. 01.04.2006.  
4  Subs. by Rajasthan Value Added Tax (Amedment) Act No. 4 of 2007 w.e.f. 09.03.2007.  
9 
 
(4) The certificate of registration so granted shall not be transferable and it shall remain in 
force unless it is cancelled. 
(5) Where a dealer is registered under the repealed Act he shall be deemed to have been 
registered under this Act from the date of commencement of this Act, provided he has 
submitted such information as has been required by the Commissioner under the repealed Act 
by notification in the Official Gazette. 
(6) When a dea ler, who is liable to get registration, does not make application under sub – 
section (1), the authority competent to grant registration, after affording an opportunity of 
being heard to such dealer, shall grant him a certificate of registration from the da te he 
becomes 1["liable to pay tax under this Act and such registration" ] shall take effect as if it has 
been granted under sub–section (2). 
(7) Where a dealer, who is already registered, intends to do business at one or more 
additional places in the State he shall be granted in such manner as may be prescribed, a 
branch certificate under the certificate of registration already held by him. 
(8) Where a dealer has one  or more additional registration under the repealed Act, he shall 
inform to his assessing authority or authority competent to grant registration within sixty days 
from the commencement of this Act, as to which of the registrations shall be treated 
registration under this Act and which of the registration certificates may be converted into 
branch certificates. If the dealer fails to do so, the Commissioner or any officer authorized by 
him for this purpose, shall declare one such registration to be the regist ration under this Act 
and shall issue branch certificate in lieu of remaining registration certificates. 
(9) Notwithstanding anything contained in this Act, a dealer dealing exclusively in exempted 
goods, shall not be required to get registration under this Act. 
12. Voluntary registration.– (1) Any person intending to commence or having commenced 
a business may, notwithstanding that he is not liable to get registration under section 11, 
apply to the authority competent to grant registration in the prescribed form for registration. 
(2) The authority competent to grant registration, after making such enquiry as it may 
consider necessary, may grant a certificate of registration in the prescribed manner from the 
date of application or as the case may be from the date of  commencement of business and the 
provisions of section 11 shall mutatis mutandis apply. 
13. Authority competent to grant registration. – (1) Every dealer liable to get registration 
shall declare his principal place of business in the application for registration filed by him and 
the Assistant Commissioner or the Commercial Taxes Officer, as the case may be, having 
territorial jurisdiction over such principal place of business, or any other officer not below the 
rank of Assistant Commercial Taxes Officer, authorized specially or generally by the 
Commissioner, shall be the authority competent to grant registration to such dealer. 
(2) In the case o f a non -resident dealer, an officer not below the rank of Assistant 
Commercial Taxes Officer authorized by the Commissioner shall be the authority competent 
to grant registration and such authority either on the application of such non –resident dealer or 
otherwise, shall grant him a certificate of registration from such date and with such terms and 
conditions, as may be specified therein. 
(3) 2[Where a dealer, after having been granted registration, changes his principal place of 
business outside the territoria l jurisdiction of the present assessing authority, he shall seek the 
permission in the prescribed manner for such change of the assessing authority from the 
Commissioner or any other officer authorized by the Commissioner in this behalf, and unless 
such permission is granted, the present assessing authority shall continue to be the assessing 
authority of such dealer. Where a decision on the grant of permission is not taken within a 
period of thirty days from the date of the application seeking change of ass essing authority, 
such permission shall be deemed to have been granted.”] 
14. Authorization for collection of tax. – Subject to the other provisions of this Act, where 
a dealer makes an application for obligatory registration or voluntary registration he may start 
collecting tax on his sales in accordance with the provisions of this Act from the date of such 
application and in that case all the provisions of this Act, as are applicable to a registered 
dealer, shall mutatis mutandis apply to him. 
15. Furnishing of security for registration . – (1) The authority competent to grant 
registration or the assessing authority shall, a s a condition to the grant of registration to a 
                                                      
1  Subs by the Rajasthan Finance Act No. 4 of 2007 w.e.f. 09.03.2007. 
2  Subs by the Rajasthan Finance Act No. 5 of 2016 w.e.f. 09.04.2016. 
10 
 
dealer or at any time after such grant, require him to furnish in the prescribed manner and 
within the time specified by such authority, the initial security or such subsequent additional 
security as may be considered necessary– 
(a) for the timely payment of the amount of tax or other sum payable by him under this 
Act; and 
(b) for the safe custody of books of accounts or any other documents required to be 
maintained under this Act and the rules made thereunder “: 
1[“Provided that no security under this section shall be required to be furnished by a 
department of the Central Government or the State Government or a public sector undertaking, 
corporation or company owned or controlled by the Central Government or the Stat e 
Government."] 
(2) At the time of grant of obligatory registration to the dealers covered under sub –section 
(1) or (5) of section 3, the initial security shall be in the form of surety of two dealers 
registered under this Act, and where the dealer is not in a  position to furnish such surety, he 
shall submit 
2[“security in the form of National Saving Certificate or in cash or in the form of three years 
bank guarantee of a nationalized bank,] of the amount of,– 
3["(a) Rs. 10,000/ – in case of a small scale manufa cturing unit, Rs. 15,000/ – in case of a 
medium scale manufacturing unit and Rs. 25,000/ – in case of a large  scale 
manufacturing unit; and 
(b) Rs. 10,000/– in cases not covered by clause (a)."] 
Explanation. – The small–scale or medium–scale or large scale–manufacturing unit shall 
have the same meaning as assigned to them by the Government of India from time to time. 
(3) At the time of grant of voluntary registration under section 12, 4["the initial security shall 
be in the form of surety of two dealers registered under this Act, and where the dealer is not in 
a position to furnish such surety, he shall submit security" ] 5[“in the form of National  Saving 
Certificate or in cash or in the form of three years bank guarantee of a nationalized bank, of the amount 
of Rs. 10,000/–.”] 
(4) The amount of security, in case of a dealer who is already registered or deemed to be 
registered under this Act, may be increased by the assessing authority, for reasons to be 
recorded in writing, to twenty five percent of the annual  tax liability of the immediate 
preceding year. However, in case of dealers registered in the current year, such increase in the 
security amount may be twenty five percent of the highest tax liability of the preceding months 
or the quarters, as the case may be. 
(5) Where the security furnished by a dealer under sub –sections (2) and (4) is in the form of 
a surety bond and the surety becomes insolvent or dies, the dealer shall, within thirty days of 
the occurrence of any of the aforesaid events, inform the assess ing authority and shall, within 
ninety days of such occurrence, furnish a fresh surety bond or furnish in a prescribed manner 
other security for the amount of the surety bond. 
(6) The assessing authority may, by order in writing, forfeit the whole or any part of the 
security furnished by a dealer– 
(a) for realizing any amount of tax, penalty, interest, erroneously availed input tax credit or 
any other sum payable by him under this Act; or 
(b) for any loss caused to the Government by negligence or willful default on his  part in 
ensuring the safe custody or proper use of the books of accounts or any other 
documents required to be maintained under this Act and the rules made thereunder. 
(7) Where as a result of an order of forfeiture under sub –section (6), the security furnish ed 
by any dealer is rendered insufficient; he shall make up the deficiency within a period of thirty 
days from the date of the communication of the said order. 
(8) No dealer shall be required to furnish additional security under sub –section (4) and no 
order of forfeiture of the whole or any part of the security shall be passed against him under 
sub– section (6) unless he has been afforded an opportunity of being heard. 
                                                      
1  Added by the Rajasthan Finance Act No. 15 of 2011 w.e.f. 15.04.2011. 
2  Subs by Act No. 4 of 2006 w.e.f. 01.04.2006. 
3  Subs by Act No. 4 of 2006 w.e.f. 01.04.2006. 
4  Subs. by Rajasthan Value Added Tax (Amedment) Act No. 3 dated 09.04.2007 w.e.f. 01.04.2006  
5  Subs by Act No. 4 of 2006 w.e.f. 01.04.2006 
11 
 
16. Amendment and cancellation of registration certificate . – (1) Every registered dealer 
or his legal representative, as the case may be, shall inform the assessing authority and also to 
the authority competent to grant registration, about every change or event as referred to in 
sub– sections (2) and (3), within thirty days of the occurrence of such change or event. 
(2) Where any change or event does not alter the basic status of a dealer, such as 
change in the name of business or place of the business, opening of a new place of 
business or dropping of old place of business, addition, deletion or modification in the 
description of goods, acquisition of any business, sale or disposal of the business in 
part, change in the constitution of the firm without dissolution, the certificate of 
registration already granted to a dealer shall be amended accord ingly from the date of 
the occurrence of the change or the event. 
(3) Where any change or event alters the basic status of a dealer, such as, conversion 
of a proprietary concern into partnership firm or vice versa, dissolution of an existing 
firm and creation of new firm, formation of a firm into a company or vice versa, a fresh 
certificate of registration shall be required to be obtained by the dealer. 
(4) Where- 
(a) any business in respect of which a certificate of registration has been granted to a 
dealer under this Act, is discontinued permanently; or 
1[(aa) a dealer has discontinued business at his principal place of business; or] 
(b) in the case of transfer of business by a dealer, the transferee already holds a certificate 
of registration under this Act; or 
(b) a dealer has ceased to be required to be registered and to pay tax under this Act; or 
(c) a dealer has obtained the certificate of registration by misrepresentation of facts or by 
fraud; or 
(d) a dealer has obtained a certificate of registration against the provisions of this Act; or 
(e) a dealer has failed to furnish security within the period specified under section 15 and a 
period of ninety days has elapsed ; or 
(f) a dealer issues false or forged VAT "invoices; or" 
 (h) a dealer has failed to furnish information, statement or r eturn as required by 
Commissioner under sub -section (2) of section 91 within the period specified 
thereunder. 
the assessing authority or the authority competent to grant registration may, after 
affording such dealer an opportunity of being heard and after recording reasons in 
writing, cancel the certificate of registration from such date as he may deem 
appropriate. 
(5) If there is any reason which in the opinion of the Commissioner warrants action in 
the interest of State revenue, the Commissioner may at any ti me, for reasons to be 
recorded in writing and after giving the dealer an opportunity of being heard, cancel the 
certificate of registration held by any dealer from such date as the Commissioner may 
specify in this behalf. 
(6) The cancellation of certificate of  registration shall not affect the liability of any 
person to pay tax due for any period till the date of such cancellation and remained 
unpaid. 
 
  
                                                      
1  Inserted by the Rajasthan Finance Act No. 14 of 2014 w.e.f. 31.07.2014. 
12 
 
CHAPTER–IV 
PAYMENT OF TAX, FILING OF RETURNS AND ASSESSMENTS 
 
 
17. Tax payable by a dealer . – (1) Subject to the  other provisions of this Act, the net tax 
payable by a registered dealer, other than the dealer covered by sub –section (2) of section 3 or 
section 5, for a tax period shall be calculated as under: – 
T = (O+R+P) – I 
Where – 
T is net tax payable; 
O is amount of output tax; 
R is amount of reverse tax; 
P is the amount of tax payable under sub –section (2) of section 4; and 
I is the amount of input tax. 
(2) Where the net tax payable under sub–section (1) has a negative value, the same shall 
be first adjusted against any  tax payable or amount outstanding under the Central Sales 
Tax Act, 1956 (Central Act No. 74 of 1956) 1["or under this Act or the repealed Act and 
the balance amount if any, shall be carried forward to the next tax period or periods. In 
case the dealer cla ims refund of the balance amount, if any, at the end of the year, the 
same shall be granted only after the end of the immediately succeeding year. 

Excerpt shown. Open the full act in Lexace.

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