VAT in India is of 2 types

    1.  Central Level VAT called CENVAT (Central Value Added Tax)

  1. State Level VAT (Different VAT for each states. For example Delhi Value Added Tax Act (DVAT) in Delhi.


Difference between CENVAT and VAT



It is imposed by Central Government

It is imposed by State Government

Same rates are applicable through out India

Rates may be different for different states

It contains of input of


Service Tax

It contains input of only

VAT (tax on sale of goods within state)


Adjustment of CENVAT with VAT and vice versa is not allowed


What was MODVAT?

The old name of Cenvat was MODVAT(Modified Value Added Tax Act)

MODVAT was introduced in 1986 but later its name was changed to CENVAT in 2000

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CA Maninder Singh

CA Maninder Singh is a Chartered Accountant for the past 13 years. He also provides Accounts Tax GST Training in Delhi, Kerala and online.