CA Vinod Kaushik

CA Vinod Kaushik


In its best attempt to meet the budgeted targets of Rs. 24000 Cr for VAT collection the Delhi Govt. is taking all important decisions related to boost the tax collection. In last few months we have seen a series of notification which have been issued to curb tax evasion such as form DS-2, form EC-II and EC-III and all others. In its recent move the Govt. has issued a notification which will make mandatory for Govt. departments to enroll themselves with Delhi VAT by filing form GE-I and to file the return on quarterly basis in form GE-II. This small write-up will outline all such important points which need urgent attention of all Govt. entities which have offices functioning in National Capital Territory of Delhi.

Who is eligible to file return in form GE-II:-

As per the recent notification No. F3 (619)/Policy/VAT/2016/1291-1304 issued on 12-01-2016 following class of entities are required to file form GE-I and GE-II:

  • All Govt. Entities having their offices functioning in National Capital Territory of Delhi and
  • The purchases of goods must be for self consumption or use by them and
  • The purchase should not be for resale as defined in section 2(1) (zc) of VAT Act, 2004 and
  • The purchase is made from the dealers registered under VAT act and having a valid TIN.

This aim of notification is to capture the information about the sales made by unorganized sectors to the Govt. departments which are collecting VAT from these Govt. entities but not paying taxes to exchequer on time. The crosschecking of data may reveal huge differences in payments made by these sellers and purchases reported by these Govt. entities in form GE-II quarterly.

Meaning of “Government Entity”:-

It may give doubts in the mind of readers that what is the meaning of Govt. Entities as per this notification and this is explained here with suitable examples. ‘Government Entity’ shall mean a State Government or the Central Government or a Company, Corporation, Board, Authority, Undertaking or any other body owned, financed or controlled either wholly or partly by any State Government or the Central Government. In my personal opinion all the departments of State and Central Govt. shall be responsible for enrollment under this notification and required to file form GE-II on quarterly basis which may cover various Govt. hospitals, schools, colleges, SDM office, Income tax department, service tax department and many more. All PSU, municipal corporations, cantonment boards, DDA are bound to comply this notification.

Important points to be kept in mind:-

While adhering to this notification following important points need to keep in mind to avoid the consequences of heavy penalties under Delhi VAT.

  • Separate GElD would be required to be generated in respect of each Drawing and Disbursing Officer (DDO)/person responsible for release of payment in respect of purchases where the number of such DDOs/persons is more than one.
  • The person authorized to file GE-II shall obtain a certificate from the seller that due VAT has been deposited. This certificate shall be enclosed with the bill submitted to the authority competent to release the payment. Format of the declaration can be obtained by sending a request on the email mentioned at the end.
  • While examining the quotation given by the supplier their TIN must be asked and should be cross verified with the website of department of trade and taxes. The verification can be done by just entering the TIN of supplier on the dealers credential option given on website.
  • The TIN given by supplier should be a valid TIN i.e. it must not be canceled TIN. In case the TIN is showing canceled it is not valid and goods must not be procured from such suppliers.

Penalty provisions for defaulters:

Normally people ask me what if we don’t file this form or this return; In case of non compliance of above said notification penalty can be imposed under section 86(9) of the DVAT Act, 2004. The amount of penalty is Rs. 200 per day from the day immediately following the day of default subject to maximum of Rs. 50000. In case the default is repeated again and again the amount of penalty will be increased by 50% in case of first subsequent offence and by 100% in case of second and further subsequent offences.


Many of Govt. entities will fall under this filing requirement of form GE-I and GE-II with effect from first quarter of 2015-16. The form GE-I is an enrolment form for various Govt. entities and form GE-II is a return form with five portions including declaration. The basic objective of prescribing this form is to get information about all such sales of goods which is flowing from unorganized sectors to organized one. The evasion of taxes by dealers or manipulation in post sales data may be curbed by effectively implementing this notification.

(Author can be reached  at, +91-9953236278)

Disclaimer: Views expressed are strictly personal. The content of this document are solely for informational purpose. It doesn’t constitute professional advice or recommendation. The Author does not accept any liabilities for any loss or damage of any kind arising out of information in this article and for any actions taken in reliance thereon.

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