The Government of Himachal Pradesh, State Taxes & Excise Department, vide Notification No. EXN-F(10)-5/2025 dated October 16, 2026, has notified the Himachal Pradesh Value Added Tax (Amendment) Rules, 2026, making electronic payment of Value Added Tax (VAT) mandatory for all dealers registered under the Himachal Pradesh Value Added Tax Act, 2005. The amendment substitutes Rule 37A of the Himachal Pradesh VAT Rules, 2005, to provide for electronic payment of tax, demand and other sums through the official web portal of the State Taxes & Excise Department.
Mandatory Electronic Payment of VAT for All Registered Dealers: Under the substituted Rule 37A, all dealers registered under the Himachal Pradesh Value Added Tax Act, 2005, are required to compulsorily pay VAT electronically through the web portal of the State Taxes & Excise Department. The amendment establishes electronic payment as the mandatory mode for payment of tax by all registered dealers under the Act.
Substitution of Rule 37A for Electronic Payment of Tax, Demand and Other Sums: The State Government has substituted the existing Rule 37A with a new provision titled “Mandatory electronic payment of tax, demand and other sum.” Notwithstanding anything contained in Rule 37, the amended provision empowers the State Government to specify the date and classes of dealers for whom payment of tax, demand or any other sum shall be made electronically through the departmental portal.
Daily Submission of E-Payment Details by Authorised Banks: The amended Rule 37A further provides that where payments are made electronically, the authorised bank shall forward a daily statement of electronic challans, known as an e-payment scroll, in Form VAT XLII to the concerned State Treasury. A copy of the statement must also be forwarded to the Accountant General, Himachal Pradesh, ensuring proper accounting and reconciliation of electronic tax payments.
Date of Payment to Be Determined Through E-Challan: The notification clarifies that, for the purposes of the VAT Rules, the date of payment shall be the date of deposit generated on the electronic challan in Form VAT-II-A. This provision establishes a specific reference date for recognising electronic payments under the statutory framework.
Statutory Authority for Amendment: The Himachal Pradesh Value Added Tax (Amendment) Rules, 2026, have been framed by the Governor of Himachal Pradesh in exercise of the powers conferred under Section 63(1) of the Himachal Pradesh Value Added Tax Act, 2005 (Act No. 12 of 2005). The amendment modifies the Himachal Pradesh VAT Rules, 2005, originally notified vide Notification No. EXN-F(5)-4/2005 dated December 2, 2005.
Effective Date of Amended Rules: The notification specifies that the amended rules shall come into force from the date of their publication in the Rajpatra (e-Gazette), Himachal Pradesh. As the notification was published in the Rajpatra on October 21, 2026, the amended provisions have come into force from the said date.
Strengthening Digital Tax Administration and Transparency: The mandatory electronic payment framework is expected to promote transparency, improve tax collection monitoring, facilitate reconciliation of government receipts and reduce dependence on manual payment processes. The requirement for daily submission of e-payment scrolls by authorised banks also strengthens the mechanism for recording and verifying VAT collections.
Compliance Implications for VAT-Registered Dealers: With the implementation of the amended Rule 37A, all dealers registered under the Himachal Pradesh VAT Act, 2005, are required to ensure electronic payment of VAT through the designated departmental portal. Dealers should also ensure proper maintenance of electronic challans and payment records, particularly Form VAT-II-A, which determines the recognised date of deposit under the amended rules.
Key Takeaway: The Himachal Pradesh Government has made electronic payment of VAT compulsory for all registered dealers by substituting Rule 37A of the HP VAT Rules, 2005, with effect from October 21, 2026. The amendment mandates electronic tax payment through the departmental portal, requires authorised banks to submit daily e-payment scrolls in Form VAT XLII and recognises the deposit date generated on Form VAT-II-A as the date of payment.
The Notification can be accessed at: https://a2ztaxcorp.net/wp-content/uploads/2026/10/Himachal-Pradesh-Value-Added-Tax-Amendment-Rules-2026.pdf
