VAT is collected and governed by the State Government , so each State Government in India has distinct rules applicable for their State based on the type of good manufactured or sold Value Added Tax (VAT) Registration is a tax registration required for businesses trading or manufacturing goods in India.vat also erroneously known as TIN and CST. Returns need to be filed on the 20th of each month (partnerships, LLPs and proprietorships can do so quarterly) RegistrationVAT is ultimately borne by the consumer. VAT is collected by the state government and it is essential to know what the VAT rate is for the type of good or service you provide in each state you provide it in