Bihar Tax & GST Compliance Guide
GST and Income Tax rates are set nationally, not by Bihar — but a handful of rules genuinely are state-specific: Professional Tax, a higher e-way bill threshold for moves within the state, Shops & Establishments registration, incorporation stamp duty, and Bihar's own Start-up Policy incentives. This page lays out exactly those, sourced from official Bihar Government and GST portals.
Get Bihar Compliance HelpNational Rules, and What Bihar Actually Adds
Most of the tax law that applies to a Bihar business is exactly the same as it is anywhere else in India — the GST Act, the Income Tax Act, and the Companies Act are all central legislation. What genuinely differs by state is administration, a few state-levied taxes, and state-run incentive schemes. Khata World is based in Muzaffarpur and files for clients across Bihar and the rest of India — the sections below are specifically the parts that change once your registered address is in Bihar.
GST
GST Registration & the Bihar E-Way Bill Rule
- GST state code
- 10 — required on every GST invoice, registration application and return filed against a Bihar GSTIN.
- Registration threshold
- ₹40 lakh turnover for goods, ₹20 lakh for services — the standard national threshold, since Bihar is not a "special category state" under GST (those have lower ₹20 lakh/₹10 lakh limits). Mandatory regardless of turnover for inter-state supply, e-commerce sellers, and casual taxable persons.
- E-way bill threshold — within Bihar
- ₹1,00,000 for intra-state movement of goods (Notification No. 09, dated 31 May 2018) — higher than the ₹50,000 threshold that applies to inter-state movement everywhere in India, Bihar included.
- Administering department
- Commercial Taxes Department, Government of Bihar — Vikas Bhawan, Bailey Road, Patna 800015. Helpdesk: 1800-345-6102 (toll-free).
State-Levied Tax
Professional Tax in Bihar
- Governing law
- Bihar Tax on Professions, Trades, Callings and Employments Act, 2011, administered by the Commercial Taxes Department.
- Annual income up to ₹3,00,000
- Nil.
- ₹3,00,000 – ₹5,00,000
- ₹1,000 per year.
- ₹5,00,000 – ₹10,00,000
- ₹2,000 per year.
- Above ₹10,00,000
- ₹2,500 per year — the ceiling every state's professional tax is capped at under Article 276 of the Constitution.
- Who is liable
- Salaried employees (deducted and deposited by the employer) and self-employed professionals, traders and business owners (self-assessed and paid directly).
Registration & Stamp Duty
Shops, Establishments & Incorporation
- Shops & Establishments registration
- Every shop, commercial establishment, restaurant, office, warehouse or service centre operating in Bihar must register under the Bihar Shops and Establishments Act, 1953, within 30 days of starting operations — applied for online at serviceonline.bihar.gov.in (Labour Resources Department).
- LLP agreement stamp duty
- A flat ₹5,000, payable at the time of filing Form 3 with the MCA — separate from the LLP's own government incorporation fee.
- Company MOA/AOA stamp duty
- Charged under the Indian Stamp Act, 1899 as applied in Bihar, on a slab linked to authorised share capital — separate from, and in addition to, the MCA's own SPICe+ incorporation fee. We confirm the exact current amount for your authorised capital before filing, since it is revised by state notification.
Bihar Start-up Policy, 2022
State Incentives for Eligible Start-ups
For a private limited company, partnership, or LLP incorporated and operating in Bihar — not a benefit available to businesses registered elsewhere.
- Eligibility
- A private limited company, registered partnership firm, or LLP, incorporated for under 10 years, with turnover not exceeding ₹100 crore in any year since incorporation — incorporated/registered in Bihar, with an office in Bihar, and applicable taxes payable in Bihar.
- Seed funding support
- Up to ₹10 lakh per start-up as an interest-free loan, repayable after 10 years — released in phases against milestones, for idea validation, prototyping, travel, market research and initial setup costs.
- Incubation cost reimbursement
- Up to ₹2 lakh per incubatee, reimbursed to Government-recognised private or state-supported incubators.
- Additional incentives — women / SC-ST / differently abled
- An extra 5% (woman-owned), 15% (SC/ST-owned) or 15% (differently-abled-owned) over the standard funding limits — with 22% of the total funding corpus reserved specifically for SC/ST beneficiaries.
- Patent filing costs
- Domestic patent filing costs are fully borne by the Government; awarded foreign patents are eligible for reimbursement of filing fees.
- Policy validity
- Notified 27 June 2022 (Memo No. 1502), in force for 5 years from that Gazette notification.
Last updated: 26 August 2026
Common Questions
Bihar Tax & Compliance — Frequently Asked Questions
Sources & How to Verify These
- Bihar Commercial Taxes Department — GST administration, e-way bill notifications, Professional Tax
- gst.gov.in — national GST registration, rates and returns
- serviceonline.bihar.gov.in — Shops & Establishments Act registration (Labour Resources Department)
- Department of Industries, Government of Bihar — Bihar Start-up Policy, 2022
These figures are current as of 26 August 2026 and are provided for general guidance, not as legal or tax advice — thresholds, slabs and policy terms change by notification. Khata World is a tax and compliance consultancy, not an ICAI-registered CA firm; we confirm the exact current rule for your specific filing before relying on it.
Compliant in Bihar, and Everywhere Else You Operate
Whether it's Professional Tax, Shops & Establishments registration, or claiming Start-up Policy incentives, we handle the Bihar-specific paperwork alongside your regular GST and income tax filing.
Talk to a Bihar Compliance Expert