VAT has finally come to India. At the central level, VAT, initially known as MODVAT, later CENVAT, has existed since 1986, but at the state level, it was introduced on 1 April 2005, at least in 21 out of the 29 states. In this article, the author describes the history and some of the most important features and practical aspects of the Indian VAT system. In this respect, the VAT story of the state of Haryana deserves special attention because, as regards VAT, that state was a year ahead of all other states.