VAT Notifications

• VAT notifications were official circulars, orders, or amendments issued by state governments under their VAT Acts
  
• They defined or modified the rate of tax, exemptions, classifications, filing procedures, or documentation norms
  
• Such notifications had the force of law and were binding on both taxpayers and the department
  
• They played a key role in administration and enforcement of VAT prior to the introduction of GST
  
• The legal backing of notifications came from specific sections in state VAT legislation (e.g., rate-setting power of the government)
  

Legal Validity After GST Implementation

• The implementation of GST on 1st July 2017 did not automatically repeal all pre-GST VAT notifications
  
• VAT notifications remained valid and continue to apply to transactions conducted before 30th June 2017
  
• For goods and services still outside the GST regime (e.g., alcohol and five petroleum products), some VAT notifications continue to apply even post-GST
  
• The residual powers of VAT law allow states to rely on these notifications for assessment, audit, recovery, and appeal related to pre-GST periods
  
• Courts have upheld the continued enforceability of valid notifications for legacy tax matters
  

Use in Assessments, Appeals, and Litigation

• VAT notifications are still used to determine the applicable rate of tax, exemption status, or procedural compliance during assessments
  
• In appeal or litigation for pre-GST VAT disputes, authorities often cite pre-existing notifications to support or deny claims
  
• Transitional issues, such as credit carryforward under TRAN-1, may also require reference to older VAT circulars
  
• Dealers facing post-GST assessments for VAT are expected to comply with the conditions laid down in those notifications
  
• Failure to comply with VAT notifications during the relevant period may result in disallowance of credit or additional tax demands
  

Situations Where VAT Notifications Still Apply

• Finalization of pending assessments, reassessments, or audit reports under VAT
  
• Handling pending VAT appeals, revision petitions, or recovery actions
  
• Verification of rate classifications, exemptions, or concessional sales for historical transactions
  
• Continuation of VAT rules for alcohol and certain petroleum products, which are still outside GST
  
• Resolving input tax credit mismatches or transitional errors tied to earlier notification-based conditions
  

Best Practices for Businesses and Taxpayers

• Preserve a copy of all relevant VAT notifications applicable to your industry and transactions up to 30th June 2017
  
• Consult these notifications while responding to VAT audits or filing appeals
  
• Ensure alignment between your returns, invoices, and notification provisions to avoid compliance errors
  
• For residual VAT goods (like liquor), stay updated on ongoing VAT notifications even after GST
  
• In disputes, quote the relevant notification along with statutory references to strengthen legal arguments