Different Sales tax incentives are available by State Government for the development of the state


These are of 3 types

  • Exemption from tax
  • Deferment of tax liability
  • Remission of tax

Type of Sale tax Incentive


Exemption from tax


On certain goods, VAT is exempt (tax free)

Also upto certain turnover, VAT is not payable

Deferment of tax liability


Tax collected from customer

But not paid to government immediately


It is deferred and paid after certain period or paid in instalments

Remission of tax


Tax collected from customer but it is not to be paid to government


Also refund of input vat available

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CA Maninder Singh

CA Maninder Singh is a Chartered Accountant for the past 14 years. He also provides Accounts Tax GST Training in Delhi, Kerala and online.