Gujarat VAT & CST Amendments w.e.f. 1st April 2011

March 29, 2011
1 min read

[By Mr. Bharat V. Shah (Director), VNCA]

Consequent to Gujarat Budget 2011 proposals the following is the gist of important amendments to the VAT & CST Acts:

W.E.F. 1-4-2011, the rate of VAT on Sales of Tobacco of all types and Tobacco products such as Bidi, Cigarettes, Gutkha, Pan masala, snuff containing tobacco, etc. will be taxable at the rate of 22.5% VAT plus 2.5% Add. Tax. (Total 25% ) instead of the earlier rate of 20%.

W.E.F. 1-4-2011, as per the Central Budget’s amendment maximum 5% tax can be levied on sales of ‘Declared Goods’ (listed in Section 15 of the CST Act).  Earlier limit was 4%. Consequently, the Gujarat Govt. has amended section 7(1A)(a) & section 9(6)(a).  Hence, now 1% additional tax is to be levied on sales of Declared Goods i.e. (i) Coal including coke in all forms; (ii) all kinds of cotton; (iii) Cotton Fabrics, Cotton Yarn; ( iv) Crude Oil; (v) Aviation Turbine Fuel; (vii) Hides & Skins; (viii) Iron & Steel; (ix) Jute; (x) LPG for domestic use; (xi) Oil seeds etc.  In other words, sales of all declared goods will be taxable at the rate of 4% VAT + 1% Add. Tax.

Inter-State sales of Declared Goods without ‘C’ Form will be taxable at the rate of 5% CST.

Consequent to the above changes, the dealer making inter-state sales (OGS Sale ) of the “Declared Goods

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