Entry 1: Salary and Wage Earners
Under the first proviso to section 3(2) the rates for entry 1 are fixed by the State Government by notification. The same slab applies to sub-entry (A), salary and wage earners of the State Government, Central Government, Panchayats, public sector undertakings and grant-in-aid institutions, and to sub-entry (B), all other salary and wage earners.
| Monthly salary or wages | Rate of tax | Effective from |
|---|---|---|
| Up to ₹12,000 | Zero | 01/04/2022 |
| More than ₹12,000 | ₹200 per month | 01/04/2022 |
Explanation I: where salary or wages are payable for a period other than a month, the monthly figure is reckoned on the actual amount paid or payable for a month. Explanation II: where a person ceases to be a salary or wage earner before the end of a month, the tax for that month is reduced proportionately. The employer deducts the tax and is liable to pay it whether or not the deduction is made (section 4).
Work Out Your Gujarat Profession Tax
Pick the class you fall in. For a salary or wage earner the figure is the tax for one month; for every other class it is the tax for the year, at the rates where the State Government is the Designated Authority.
Rates from the Commercial Tax Department sheet updated as on 27/06/2024, where the State Government is the Designated Authority. A person under more than one entry pays under the entry with the highest rate (section 3(3)); the calculator works out one entry at a time.
Entries 2 to 10: Rates Where the State Government Is the Designated Authority
Since 1 April 2008 the tax is levied by Designated Authorities (Municipal Corporations, Municipalities, Panchayats or the State Government) at the rate each fixes, within the maximum in Schedule I. The rates below are the ones the Commercial Tax Department publishes for cases where the State Government is the Designated Authority.
| Entry | Class of persons | Rate of tax | Effective from |
|---|---|---|---|
| 2 | Legal practitioners including solicitors and notaries public; medical practitioners including medical consultants and dentists; technical and professional consultants including architects, engineers, RCC consultants, tax consultants, chartered accountants, actuaries and management consultants; chief agents, principal agents, special agents, insurance agents and surveyors or loss assessors under the Insurance Act, 1938; all contractors other than building contractors; commission agents, dalals and brokers other than estate brokers; automobile brokers; tour operators and travel agents; cable TV operators; film distributors; owners of advertisement agencies; owners of tuition classes or tutorial institutions; owners of institutions or service providers engaged in computer education or training, or online information and database service; owners of driving schools; owners of marriage halls and party plots; angadia or courier service providers; owners of health clubs and recreation clubs. | ₹1,000 per year | 01/04/2008 |
| 3 | Members of associations recognised under the Forward Contracts (Regulation) Act, 1952; members of recognised stock exchanges; owners or lessees of oil pumps and service stations; licensed foreign liquor vendors and employers of residential hotels and theatres; public limited or private limited companies registered under the Companies Act, 1956 and engaged in any profession, trade or calling; individuals or institutions conducting chit funds; banking companies; State level and district level co-operative societies engaged in any profession, trade or calling; co-operative sugar factories and spinning mills; estate agents, estate brokers or building contractors; owners or lessees of video parlours or video libraries. | ₹1,000 per annum | 01/04/2008 |
| 4 | Firms registered under the Indian Partnership Act, 1932 which are engaged in any professions, trades or callings. | ₹1,000 per annum | 01/04/2008 |
| 5 | Occupiers of factories as defined in the Factories Act, 1948. | ₹1,000 per annum | 01/04/2008 |
| 6 | Employers of establishments as defined in the Bombay Shops and Establishments Act, 1948, where on an average the employees employed in the establishment during a year are more than five per day. | ₹1,000 per annum | 01/04/2008 |
| 7(i) | Dealers as defined in the Gujarat Value Added Tax Act, 2003 whose annual gross turnover of all sales or of all purchases is not more than ₹5,00,000. | Zero | 02/12/2021 |
| 7(ii) | Such dealers: more than ₹5,00,000 but not more than ₹10,00,000. | ₹1,250 per annum | 02/12/2021 |
| 7(iii) | Such dealers: more than ₹10,00,000. | ₹2,400 per annum | 02/12/2021 |
| 7A(i) | Suppliers as defined in the Gujarat Goods and Services Tax Act, 2017 whose turnover in State is not more than ₹5,00,000. | Zero | 02/12/2021 |
| 7A(ii) | Such suppliers: more than ₹5,00,000 but not more than ₹10,00,000, and not registered under that Act. | Zero | 02/12/2021 |
| 7A(iii) | Such suppliers: more than ₹5,00,000 but not more than ₹10,00,000, and registered under that Act. | ₹1,250 per annum | 02/12/2021 |
| 7A(iv) | Such suppliers: more than ₹10,00,000, whether registered under that Act or not. | ₹2,400 per annum | 02/12/2021 |
| 8 | Holders of permits for transport vehicles granted under the Motor Vehicles Act, 1988, used or adapted to be used for hire or reward, where the person holds permits for more than two transport vehicles (buses, taxis, trucks or three wheeler goods vehicles). Persons residing together as members of one family and holding separate permits are one person for this entry. | ₹1,000 per annum | 01/04/2008 |
| 9 | Money lenders licensed under the Bombay Money-Lenders Act, 1946. | ₹1,000 per annum | 01/04/2008 |
| 10 | Persons other than those in the preceding entries who are engaged in any professions, trades, callings or employments and in respect of whom a notification is issued under the fourth proviso to section 3(2). | ₹1,000 per annum | 01/04/2008 |
For entry 7 the year is the year as defined in section 2(36) of the Gujarat Value Added Tax Act, 2003. For entry 7A, turnover in State has the meaning given in the Gujarat Goods and Services Tax Act, 2017, during any financial year or part of it.
Maximum Rates in Schedule I and the Role of Local Bodies
| Point | Figure | What the Act says | Provision |
|---|---|---|---|
| Who levies the tax | Designated Authority | A Municipal Corporation, a Municipality, a village, taluka or district Panchayat or the State Government, as designated by notification for a class of persons and an area. The tax is levied for the benefit of the Panchayats, Municipalities, Municipal Corporations or the State. | s.2(aa), s.3(1) |
| Rate for entries 2 to 10 | Fixed by the Designated Authority | At the rate fixed by the Designated Authority, not exceeding the amount against the class in Schedule I. The State Government may notify a minimum rate. | s.3(2) and third proviso |
| Maximum rate printed in Schedule I for entries 2 to 10 | ₹2,500 per annum | As printed in the Act copy amended up to Gujarat Act 10 of 2008. In that copy the first dealer slab in entry 7 (turnover not more than ₹2,50,000) is Zero. | Schedule I (from 1-4-2008) |
| Rate for entry 1 (salary and wages) | Fixed by the State Government | By notification in the Official Gazette. | s.3(2), first proviso |
| Limit for any one person | ₹2,500 in a year | The tax payable in respect of any one person shall not exceed two thousand and five hundred rupees in any year. | s.3(2), second proviso |
Exemptions printed below Schedule I, for entries 2 to 10: companies in respect of which winding up orders are passed, from the date of the order; co-operative societies under liquidation, from the commencement of liquidation proceedings; and a primary co-operative society whose members are workers carrying on its activity by their own labour.
Late Fee and Penalty
Where an employer or a person liable to registration or enrolment has without reasonable cause failed to apply in time, the prescribed authority may impose a penalty of up to ₹20 for each day of delay for an employer and up to ₹10 for each day of delay for others, after a hearing. Deliberately false information in the application can cost up to ₹1,000. Gujarat PT Act · s.5(5), s.5(6)
An employer who does not deduct the tax when paying salary, or deducts it and does not pay it, and an enrolled person who does not pay, pays simple interest at one and a half per cent of the tax due for each month or part of a month for which it remains unpaid. Gujarat PT Act · s.9
If an enrolled person or a registered employer fails without reasonable cause to pay the tax within the required time or the date in the notice of demand, a penalty of up to fifty per cent of the tax due may be imposed after a hearing. Gujarat PT Act · s.10
Filing the employer return late without reasonable cause can attract a penalty of up to ₹10 for each day of delay. Failing without sufficient cause to comply with the Act or the Rules is punishable on conviction with a fine of up to ₹5,000, and up to ₹50 a day while the offence continues. Gujarat PT Act · s.6(3), s.20
What You Pay in Common Cases
Employee earning ₹15,000 a month
Employee earning ₹11,500 a month
GST registered supplier, turnover in State ₹8,00,000
Employer pays ₹2,000 of deducted tax two months late
How to Apply and Pay
- 1Employer: get registeredApply in Form 1 within sixty days of becoming liable, separately for each place of work; the certificate is issued in Form 2 (s.5(1), rule 3).
- 2Self: get enrolledA person liable under entries 2 to 10 applies in Form 3 within sixty days to each Designated Authority where he has a place of work; the certificate is in Form 4 (s.5(2), rule 4).
- 3Deduct from salaryThe employer deducts the tax before paying the salary and is liable for it whether or not it was deducted (s.4).
- 4Pay and fileWhere the State Government is the Designated Authority, pay by challan in Form 10 (rule 16) and file the return in Form 5 within fifteen days of the end of the month (rule 11(1)).
- 5Enrolled persons: by 30 SeptemberPay the year’s tax before 30 September if enrolled on or before 31 August, or within one month of enrolment if enrolled later (s.8(2)).
- 6Display the certificateKeep the certificate of registration or enrolment, or a copy, displayed at the place of work (rule 8).
How to Use This Chart
- For payroll, deduct nil up to ₹12,000 of monthly salary and ₹200 a month above ₹12,000.
- For any class other than salary, first find out which Designated Authority collects the tax at the place of business. A Municipal Corporation, Municipality or Panchayat may have fixed its own rate within the ₹2,500 maximum.
- A person who falls under more than one entry pays under the entry with the highest rate (section 3(3)).
- A person under entries 2 to 10 pays for the whole year even if engaged in the profession, trade or calling for part of the year (section 3(4)).
- A person liable to more than one Designated Authority pays to the one where the liability is highest (section 3(5)).
- The rates for entries 2 to 10 are those published by the Commercial Tax Department for cases where the State Government is the Designated Authority. Rates fixed by individual Municipal Corporations, Municipalities and Panchayats are not shown.
- The rate sheet is marked "Updated as on 27/06/2024". A change notified after that date is not included.
- The notifications that fixed the salary slab from 1 April 2022 and the dealer and supplier slabs from 2 December 2021 are not on file; their numbers are not quoted here. The figures and effective dates are as printed in the department rate sheet.
- The Act copy read is amended only up to Gujarat Act 10 of 2008. Entry 7A (suppliers under the Gujarat GST Act) appears in the rate sheet but not in that copy, so the Schedule I maximum for it is not shown.
- Notifications under entry 10 and exemption notifications are not covered.
- Penalties, interest, due dates and forms are read from the Act copy amended up to Gujarat Act 10 of 2008 and the Rules copy published by the Commercial Tax Department. An amendment made after those copies, and any different place or manner of payment declared by a Municipal Corporation, Municipality or Panchayat as Designated Authority (rule 16(2)), is not shown.
Official documents behind this page
- Rate of Profession Tax under the Gujarat State Tax on Professions, Trades, Callings and Employments Act, 1976, where State Government is Designated Authority, "Updated as on 27/06/2024" (Gujarat Commercial Tax Department, commercialtax.gujarat.gov.in)Entries 1 to 10 and 7A with the rate of tax and the effective date of each (01/04/2022 for entry 1, 02/12/2021 for entries 7 and 7A, 01/04/2008 for the rest), Explanations and Notes 1 to 3.
- Gujarat State Tax on Professions, Trades, Callings and Employments Act, 1976 (President Act 11 of 1976), Gujarat Commercial Tax Department copy amended up to Gujarat Act 10 of 2008Section 2(aa) (Designated Authority), section 3(1) to 3(5) (levy, rates fixed by the Designated Authority, entry 1 rates by State notification, limit of ₹2,500 a year), section 4 (employer liability), Schedule I as substituted with effect from 1-4-2008 (maximum rates) and the exemptions printed below it. Also section 5 (registration and enrolment, penalties of ₹20 and ₹10 a day and ₹1,000), section 6 (returns, ₹10 a day), section 8 (payment by enrolled persons), section 9 (interest at one and a half per cent a month), section 10 (penalty up to fifty per cent) and section 20 (offences).
- Gujarat State Tax on Professions, Traders, Callings and Employments Rules, 1976 (Gujarat Commercial Tax Department copy, commercialtax.gujarat.gov.in)Rule 3 (registration in Form 1 within sixty days, certificate in Form 2), rule 4 (enrolment in Form 3, certificate in Form 4, separate certificate for each Designated Authority), rule 4-A (declaration in Form 4-A), rule 8 (display of certificate), rule 11 (monthly return in Form 5 within fifteen days), rule 11A (annual return in Form 5-AA where employees do not exceed twenty), rule 16 (payment by challan in Form 10), rule 17 (deduction from salary).
Disclaimer: This chart reproduces fees and rates from the official documents listed above, as read on 2 October 2026. It is general information, not professional advice for your case. Fees, rates and slabs are changed by notification, and the amount the authority’s portal or challan asks for on the day you pay is the one that applies. The calculator only adds up the figures on this page; it does not know your facts or any later change. TaxClue is not responsible for a decision taken on this page alone. Check the current notification on the official website before you pay or file.