The Lakshadweep Value Added Tax Regulation, 2022.

The Government of Lakshadweep on 19th September 2022, has published the Lakshadweep Value Added Tax Regulation, 2022 to widen the tax base by levying tax on sale of goods excluded from the Union Territory Goods and Services Tax Act, 2017 at every point of sale, making the levy of tax transparent and for matters connected therewith or incidental thereto.

As per this regulation, Every dealer who has become liable to pay tax on the sale of goods shall continue to be so liable unless his taxable turnover during the preceding twelve months, or such further period as may be prescribed, has remained below the taxable quantum and on the expiry of the twelve months or such further period his liability to pay tax shall cease:

 Provided that any dealer whose liability to pay tax under this Regulation ceases for any other reason may apply earlier for the cancellation of his registration, and on such cancellation, his liability to pay tax shall cease: Provided further that a dealer shall remain liable to pay tax until the date on which his registration is cancelled.

If any person who transports goods or holds goods in custody for delivery to or on behalf of any person, on being required by the Commissioner so to do, fails to furnish any information in his possession in respect of the goods; or to permit inspection thereof, then without prejudice to any other action which may be taken against such person, a presumption may be raised that the goods in respect of which he has failed to furnish information or permit inspection, are owned by him and are held by him for sale in Lakshadweep and the provisions of this Regulation shall apply.

No tax credit shall be allowed—

  • in the case of the purchase of goods for goods purchased from a person who is not a registered dealer;
  •  for the purchase of non-creditable goods as listed in the Third Schedule
  • for the purchase of goods which are to be incorporated into the structure of a building owned or occupied by the person;
  • for goods purchased from a dealer who has elected to pay tax;
  • for goods purchased from a casual trader;
  • to the dealers or class of dealers unless the tax paid by the purchasing dealer has actually been deposited by the selling dealer with the Government or has been lawfully adjusted against output tax liability and correctly reflected in the return filed for the respective tax period.