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

Previous Story

Bar Associations oppose Online Gujarat VAT Returns

Next Story

Budget 2011 (Finance Act, 2011) – Complete roundup of service tax provisions with effective date

Latest from Blog

Income Tax deduction for procurements from MSMEs only upon actual payment

By Shaleen Shah | LinkedIn, assisted by Divyansh Jain Introduction This Note is relevant to computation of income under the head ‘Income from business and profession’. Section 43B of the Income Tax Act provides a list of expenses allowed as deduction, on cash basis irrespective of the year of accounting.

Foreign companies may be required to file Tax Returns in India

by Nexdigm Private Limited as published on mondaq.com Impact of increase in withholding tax on rates for Fees for Technical Services and Royalty As per Indian Tax laws1, payments made to Non-Residents/Foreign Companies for Fees for Technical Services (FTS) and Royalties were liable to tax at the effective tax rate of

How Cryptocurrencies Are Taxed In India

[Source: forbes.com; Authors: Justin M Bharucha, Aashika Jain] Cryptocurrencies and non-fungible tokens (NFTs) are presently unregulated in India. While the Reserve Bank of India (RBI) had sought to ban cryptocurrencies in 2018, the Supreme Court quashed the attempted ban leaving cryptocurrencies in regulatory limbo – neither illegal nor, strictly speaking,

Higher rate of TDS in certain situations from 1st July 2021

[By Shaleen Shah (Partner), VNCA] Finance Act 2021, has introduced a new section 206AB effective from 1-Jul-2021 wherein a payer/buyer is responsible to deduct TDS at higher rate (i.e. twice the rate as specified under the relevant provision of the Income Tax Act or twice the rate/ rates in force;
GoUp

Don't Miss

New Section 12AB: Re-Registration of Trusts / Institutions registered u/s 10(23C) / 12A / 12AA / 80G of Income Tax Act

[By Shaleen Shah (Partner), VNCA] All the existing charitable and

QRMP scheme launched for GST payers with turnover up to Rs.5 crore

The government has launched the Quarterly Return filing & Monthly