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VAT Registration is mandatory in most states of India for individual traders or manufacturers with a turnover of more than Rs.5 lakhs per year (Rs.10 lakhs in some states). VAT Registration is pretty much identical with CST and TIN. Therefore, VAT will ultimately be borne by the consumer himself.
VAT is collected and governed by the State Government, and each State Government have different set of rules applicable for their State based on the type of good manufactured / sold. My Online CFO can help you with complying with all the relevant regulations and much more.