Gujarat VAT Amendments – Enacted w.e.f. 1-Aug-2009

As informed to you through our Circular dated 27-Jul-09, the Gujarat VAT (Amendment) Bill, 2009 (No. 18/2009) is enacted w.e.f. 1-Aug-09.  In continuance thereof, your attention is further drawn to the following Amendments & Notifications:

1.      Penalty for late submission of return is prescribed as under.

(A)      Penalty for Return late up to 7 days at Rs.100/- and for further delay, Rs.100/- per day of default up to thirty days from the due date.

(B)      Penalty for Return delayed beyond first thirty days from due date will be imposed from Rs.3000/- to a maximum of Rs.10, 000/-.

(C)      For Dealers holding Composition Permission U/s 14, maximum penalty will be restricted to Rs.1000/- per return and in the case of Dealers who are required to file quarterly returns, maximum penalty will be restricted to Rs.2000/- per return.

[NOTIFICATION:  Penalty for return default]

2.      The due date for submission of Annual Return for the dealer liable for audit U/s 63 is extended up to nine months from the end of the year i.e. 31st December.

3.      (a)    By Notification Handmade articles made from Rajula Stone is exempted from tax w.e.f. 01/08/2009, similarly wood stove is also exempted from tax.

         (b)    Brass parts excluding hardware, sanitary wares, Bathroom fitting are taxable at 4%+1% Additional Tax [NOTIFICATION: Handmade articles, Wood stove, brass parts, etc.]

         (c)    Zippers & Fasteners is now taxable at 4%+1% Additional Tax, as industrial input items. [NOTIFICATION: Zippers & fasteners added to the list of industrial inputs ]

4.      List of IT Products covered by the substituted Entry No.45 and taxable at 4%+1% Additional Tax are published.  The relevant notification containing the List of IT Products can be downloaded from the following link: [NOTIFICATION: List of Information Technology (IT) products]

5.      As per the Amendment, Entry No. 18 of Schedule II for (i) Chemicals of All types & (ii) Solvent are deleted.  Hence, chemicals notified as industrial input items covered in notification attached to entry 42/A- are taxable at 4%+1% Additional Tax. 

         Till date, 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.  Further list of chemicals covered under the entry is yet to be published.  Dealers in Chemicals must check the items in these notifications.