Delhi VAT Rates: Schedules, Works Contracts and Current GST Position

The Delhi Value Added Tax Act, 2004 (DVAT Act) historically applied different tax rates to different classes of goods. Since the introduction of GST on 1 July 2017, the position has changed substantially. This guide explains the old DVAT rate structure and how to identify the tax law applicable today.

Important current-law distinction: Most supplies of goods and services are governed by GST rather than DVAT. Delhi VAT continues to be relevant principally for goods kept outside GST, including petroleum crude, high speed diesel, motor spirit (petrol), natural gas, aviation turbine fuel and alcoholic liquor for human consumption, subject to the applicable law and notifications. Historical DVAT percentages must not be used as a current rate chart.

Historical Delhi VAT rate structure

The original article identified the following categories and rates. These are historical illustrations, not a statement of rates applicable to transactions in 2026. Rates, schedules and special notifications changed over time.

Goods or transaction	Rate in the original article	How to interpret it
Goods in the Second Schedule	1%	Historical schedule-linked treatment; verify the rate for the relevant transaction date.
Goods in the Third Schedule	5%	Historical lower-rate category, subject to subsequent amendments.
Goods in the Fourth Schedule	20%	Historical higher-rate category; not a universal present-day rate.
Goods involved in execution of works contracts	12.5%	Historical general reference; the taxable value, deductions and composition provisions require separate analysis.
Goods not listed in the First, Second, Third or Fourth Schedules	12.5%	Historical residual rate; subsequent amendments and notifications could change it.
Goods in the First Schedule	Exempt	Schedule-based exemptions depended on the wording and effective date of the entry.

Relevant legal provisions explained

Section 4: Imposition of tax

Section 4 of the DVAT Act provides the charging framework for tax on taxable turnover and references the rates and schedules applicable under the Act. The rate for a historical sale must be determined using the legislation and notifications in force on that sale date.

First, Second, Third and Fourth Schedules

The schedules classify goods for exemptions or specified tax treatment. A schedule entry is not enough on its own: its description, conditions, amendments and effective dates must also be checked.

Section 5: Taxable turnover

Section 5 addresses the calculation of taxable turnover, including relevant exclusions and adjustments under the statutory framework. Classification and valuation must be considered before calculating any tax liability.

Works contracts and Section 2(1)(zc)

The definition of a works contract under the DVAT Act is relevant to historical transactions involving transfer of property in goods during execution of a contract. The tax treatment may depend on valuation rules, permissible deductions, composition options and the period involved. Under GST, works-contract services relating to immovable property are addressed separately, including through section 2(119) of the Central Goods and Services Tax Act, 2017.

Which tax applies in Delhi today?

For supplies covered by GST, consult the relevant CGST, SGST or IGST provisions and rate notifications. For goods that remain outside GST, consult Delhi VAT legislation, the latest relevant Delhi government notifications and product-specific rules. Do not infer the current rate for petrol, diesel or liquor from the historical table above.

The Constitution (One Hundred and First Amendment) Act, 2016 and the GST legislation reshaped the division of indirect tax powers. Petroleum products listed for deferred GST treatment remain subject to existing tax arrangements until brought within GST by the prescribed process; alcoholic liquor for human consumption is excluded from GST.

How to verify a DVAT or GST rate

Identify the exact product and transaction date.
Determine whether the supply is within GST or remains subject to VAT.
Review the statutory schedule, relevant rate notification and amendments effective on that date.
Check exemptions, special conditions, works-contract valuation and any applicable interstate-sale provisions.
Keep supporting invoices, classifications and applicable notifications with the tax records.

Official legislation and tax resources

Department of Trade and Taxes, Government of NCT of Delhi - Delhi VAT resources, departmental information and notifications.
GST Portal - GST compliance and taxpayer services.
CBIC GST website - Central GST legislation, notifications and guidance.
India Code - Official repository for central legislation.

Frequently asked questions

Is the Delhi VAT rate still 5% or 12.5%?

No single historical rate applies to all present-day transactions. Most goods are under GST, while specified goods outside GST may attract VAT at rates set by current law and notifications.

Does the DVAT Act still matter after GST?

Yes. It can remain relevant to specified non-GST goods, earlier tax periods, assessments, appeals and other legacy matters, subject to applicable savings and transitional provisions.

Is the historical 12.5% works-contract rate current?

No. Works-contract taxation depends on the period and the governing statute. Modern GST treatment should be assessed under GST law for covered supplies.

Updated: 11 October 2026. This overview is general information; rates and legal provisions should be checked against the latest official notifications before use.