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As per the Central Excise Act and Rules, a manufacturing unit is required to register if its aggregate value crosses Rs 1.5 Crores, and needs to discharge the duty liability.
Similarly, under VAT, a manufacturer is liable for registration if his turnover during the financial year crosses the threshold limit. The threshold limit differs from state to state. Given the fact that VAT threshold limit ranges from Rs 5 – 20 Lakhs, let’s assume that most manufacturers will be registered under VAT.