The Government of Rajasthan has notified the Rajasthan Value Added Tax Rules, 2026, laying down a comprehensive procedural and digital compliance framework for administration of Value Added Tax under the Rajasthan Value Added Tax Act, 2025. The Rules have been framed by the State Government in exercise of the powers conferred by Section 44 of the Rajasthan Value Added Tax Act, 2025 (Act No. 6 of 2025). The notification has been issued by the Finance Department (Tax Division), Government of Rajasthan, under Notification No. F.12(27)FD/Tax/2025-12 dated August 03, 2026.
The Rules provide that they shall be called the Rajasthan Value Added Tax Rules, 2026. Importantly, the Rules will come into force from such date as the State Government may appoint by a separate notification in the Official Gazette. Accordingly, the notification dated 03 August 2026 lays down the new regulatory framework, while its operative commencement will be governed by the date separately notified by the State Government.
A major focus of the new Rules is digitisation of VAT administration and taxpayer services. Applications for registration will be made electronically in FORM VAT REG-01 through the designated State portal. GSTIN, mobile number and e-mail details furnished by an applicant will be electronically validated, including verification through the GST Network database and one-time passwords. Where an application is found in order, registration is to be approved within seven working days. The Rules also provide for deemed approval where the competent authority does not take the prescribed action within the stipulated period.
The registration framework also covers issuance of electronic registration certificates and Tax Identification Numbers, separate registration for multiple places of business in specified cases, suo motu registration of persons liable but not registered, physical verification of business premises, amendment of registration, cancellation and revocation of cancellation. Dealers will also be required to display their Tax Identification Number at their principal and additional places of business.
The Rules introduce a structured electronic tax accounting mechanism through an Electronic Liability Register, Electronic Credit Ledger and Electronic Cash Ledger. Tax, interest, penalty, late fee and other amounts payable will be maintained electronically on the designated portal. Payments are envisaged primarily through the Electronic Government Receipt Accounting System (e-GRAS), with facilities including internet banking, UPI, IMPS, credit or debit cards and NEFT/RTGS. Over-the-counter payment through authorised banks is also permitted within the prescribed monetary limit and specified exceptions.
The new framework contains detailed safeguards governing Input Tax Credit (ITC). Credit is linked to prescribed tax documents, including VAT invoices and debit notes, and to the furnishing of transaction details by the selling dealer. ITC in respect of invoices or debit notes will generally be available where the seller has furnished the relevant details in FORM VAT RET-01 and the corresponding credit information has been communicated to the purchasing dealer in FORM VAT RET-02. The Rules also empower the competent authority to restrict utilisation of credit where there are reasons to believe that it has been fraudulently availed or is otherwise ineligible.
Detailed provisions have also been prescribed for VAT invoices, credit notes, debit notes and delivery challans. A registered dealer making a taxable sale is required to issue a VAT invoice containing prescribed particulars, including registration details, description and quantity of goods, value, tax rate and tax amount. The Rules seek to establish a clear documentary trail for transactions and strengthen the linkage between valid invoices and admissibility of input tax credit.
The return-filing mechanism has been substantially structured around electronic compliance. Registered dealers, subject to prescribed exceptions, are required to furnish details of sales and other dispatches in FORM VAT RET-01 for every month by the 10th day of the succeeding month. Purchase-related information based on suppliers’ declarations will be made available electronically in FORM VAT RET-02 by the 20th day of the succeeding month. Monthly VAT returns in FORM VAT RET-03 are to be furnished electronically on or before the 30th day of the succeeding month. Annual returns are generally required by 31 December following the end of the financial year, while dealers having aggregate turnover exceeding Rs. 5 crore are also required to furnish a self-certified reconciliation statement in the prescribed form.
The Rules establish detailed procedures for scrutiny, assessment and audit. Electronic notices and prescribed forms will be used to communicate discrepancies in returns, differences in tax liability, non-filing of returns, non-payment of tax and cases involving possible avoidance or evasion of tax or wrongful availment of input tax credit. The audit provisions enable verification of books of account, turnover, exemptions, deductions, tax rates, input tax credit and refund claims, while giving the dealer an opportunity to respond to discrepancies before finalisation of audit findings.
A comprehensive electronic mechanism has also been provided for refunds. Refund claims for tax, interest, penalty, fees, excess payment, eligible export-related tax or unutilised input tax credit, as applicable, may be filed electronically in FORM VAT RFD-01, generally within two years from the relevant date. Refund applications are to be scrutinised electronically, and sanctioned refunds may be directly credited to the eligible bank account of the applicant. The Rules further provide for interest where an eligible refund is not made within 60 days, at such rate not exceeding six per cent as may be notified by the State Government.
The appellate framework has similarly been aligned with digital administration. An appeal to the Appellate Authority under Section 37 is to be filed electronically through the designated State portal in FORM VAT APL-01, ordinarily within 60 days from communication of the order appealed against. The Rules also provide for appeals before the Rajasthan Revenue and Tax Board, revision before the High Court, electronic communication of hearing notices and implementation of orders passed in appeal or revision. At the same time, the framework expressly safeguards reasonable opportunity of hearing before an order detrimental to a dealer or other person is passed.
Separate chapters of the Rules deal with demand and recovery, inspection, search and seizure, compounding of offences, service of notices, determination of disputed questions, rectification of mistakes and reopening of ex-parte assessments. The broad architecture reflects increased reliance on the designated State portal for applications, returns, notices, communications, orders and other official dealings between taxpayers and the Commercial Taxes Department.
The Rules also mark a transition from the earlier regulatory framework. Rule 101 repeals the Rajasthan Value Added Tax Rules, 2006, while protecting actions already taken, privileges accrued and obligations or liabilities incurred under the repealed Rules. Existing notifications and circulars issued with reference to the earlier Rules will continue to remain in force unless they are expressly or impliedly superseded, with references to the repealed Rules being read as references to the corresponding provisions of the new Rules.
Overall, the Rajasthan Value Added Tax Rules, 2026 establish a technology-driven and process-oriented VAT administration framework, with greater emphasis on electronic registration, return filing, digital payment and ledgers, transaction-level matching for input tax credit, online refunds, electronic assessment and audit, and digitally enabled appellate proceedings. The framework is aimed at bringing greater transparency, standardisation, traceability and efficiency to VAT administration in the State.
The Rajasthan Value Added Tax Rules, 2026 can be accessed at: https://finance.rajasthan.gov.in/PDFDOCS/TAX/CCT/15091.pdf
