Gujarat VAT & CST

Gujarat VAT Amendments

Addition / Amendment of Entries in Industrial Input List

Chemicals notified as industrial input items covered in notification attached to entry 42/A- are taxable at 4%+1% Additional Tax. Until now, the list of chemicals covered under entry 42/A have been notified vide the Notifications Nos. GHN-33/2006 dtd. 31-Mar-2006; GHN-46/2006 dtd. 29-Apr-2006 & GHN-17/2006 dtd. 22-May-2007.

In a latest Notification No.GHN-04-VAT-2010-SCH-II (42A)(17)-TH dtd. 15-Feb-2010, Entry Nos. 242 to 273 are inserted in the Industrial Input list given under Entry 42-A of Schedule II of the VAT Act. Now these goods shall be taxable at the rate of 4% +1% Add.Tax with immediate effect. Some other Entries are substituted such as Entry Nos. 5, 58, 62, 75, 83 & 230. The details are as per enclosed Notification.

Addition of Items for Entry Tax

In another Notification No. GHN-03 GEA-2010-(S.3)(4)-TH dtd.15-Feb-2010, following item is added in the list of “Specified Goods” for the purpose of Entry tax:

With this amendment, a person who brings any of the above new notified “Specified Goods” into a local area from any place outside the state for consumption, use or sale therein is required to pay Entry Tax @ 4% (Four Percent).

A Registered dealer can claim Input Tax Credit of the amount of Entry Tax Paid on such goods in monthly or quarterly VAT Return, as applicable.

While bringing the above goods into Gujarat, authenticated Form No.402 must be used. Similarly for movement of aforesaid goods outside the State, authenticated Form No.403 must be used. For any non-compliance, the check-post authority will levy a penalty.

For preparing the VAT Return, please send separate details of purchases of this item so that Entry Tax can be calculated & ITC can be claimed.

Refund for Units in SEZ

In another Notification No.GHN-02-VAR-2010(25)/Th dtd.11-Feb-2010, Gujarat Value Added Tax Rules are amended pertaining to allowing refund for SEZ Units.

Amendment / Addition in Entries

In a further Notification No.GHN-05-VAT-2010-S.5 (2)(29)-TH dtd.15-Feb-2010, Entry Nos.35 & 60 pertaining to Machinery used in execution of Works Contract & Metro Rail Coaches are amended and a New Entry No.72 is added pertaining to transmission apparatus for radio & TV broadcasting sold to government or semi-government bodies.

Tags: Legal-Updates