|
STATE-WISE
ANALYSIS
WHITE PAPER: VAT RATES AND CLASSIFICATION OF COMMODITIES
2.19 Under the VAT system covering about 550 goods, there will be only two basic VAT rates of 4% and 12.5%, plus a specific category of tax-exempted goods and a special VAT rate of 1% only for gold and silver ornaments, etc. Thus the multiplicity of rates in the existing structure will be done away with under the VAT system. Under exempted category, there will be about 46 commodities comprising of natural and unprocessed products in unorganized sector, items which are legally barred from taxation and items which have social implications. Included in this exempted category is a set of maximum of 10 commodities flexibly chosen by individual States from a list of goods (finalised by the Empowered Committee) which are of local social importance for the individual States without having any inter-state implication. The rest of the commodities in the list will be common for all the States. Under 4% VAT rate category, there will be the largest number of goods (about 270), common for all the States, comprising of items of basic necessities such as medicines and drugs, all agricultural and industrial inputs, capital goods and declared goods. The schedule of commodities will be attached to the VAT Bill of every State. The remaining commodities, common for all the States, will fall under the general VAT rate of 12.5%. In terms of decision of the Empowered Committee, VAT on AED items relating to sugar, textile and tobacco, because of initial organisational difficulties, will not be imposed for one year after the introduction of VAT, and till then the existing arrangement will continue. The position will be reviewed after one year.
DELHI
[Sec 4]
|
Schedule
|
Description
|
Rate
of Tax
|
|
I
|
List
of exempted commodities
|
|
|
II
|
Bullion,
articles made of gold, silver
and precious metals including jewellery made of the
above.
|
1%
|
|
III
|
List
of goods charged at 4%.
|
4%
|
|
IV
|
Petroleum,
liquor, country liquor, narcotics, molasses, rectified
spirit, Lottery tickers, Brake Fluids
|
20%
|
|
V
|
List
of exempted dealers
|
|
|
VI
|
List
of organizations who can claim refund
|
|
|
VII
|
Automobiles,
fuel, clothing, Food, Beverages, Entertainment devices,
AC, Tobacco-If used by a dealer who does not deal in these
either as finished products or as raw materials, in the
course of his business.
|
|
|
|
Works
Contract
|
12.5%
|
|
|
Other
goods not included in Schedules I, II, III, IV or VII.
|
12.5%
|
|
Rates
of Taxes
STATEWISE
ANALYSIS
WHITE PAPER: VAT RATES AND CLASSIFICATION OF COMMODITIES
2.19 Under the VAT system covering about 550 goods, there will be only two basic VAT rates of 4% and 12.5%, plus a specific category of tax-exempted goods and a special VAT rate of 1% only for gold and silver ornaments, etc. Thus the multiplicity of rates in the existing structure will be done away with under the VAT system. Under exempted category, there will be about 46 commodities comprising of natural and unprocessed products in unorganized sector, items which are legally barred from taxation and items which have social implications. Included in this exempted category is a set of maximum of 10 commodities flexibly chosen by individual States from a list of goods (finalised by the Empowered Committee) which are of local social importance for the individual States without having any inter-state implication. The rest of the commodities in the list will be common for all the States. Under 4% VAT rate category, there will be the largest number of goods (about 270), common for all the States, comprising of items of basic necessities such as medicines and drugs, all agricultural and industrial inputs, capital goods and declared goods. The schedule of commodities will be attached to the VAT Bill of every State. The remaining commodities, common for all the States, will fall under the general VAT rate of 12.5%. In terms of decision of the Empowered Committee, VAT on AED items relating to sugar, textile and tobacco, because of initial organisational difficulties, will not be imposed for one year after the introduction of VAT, and till then the existing arrangement will continue. The position will be reviewed after one year.
|
Schedule
|
Description
|
Rate
of Tax
|
|
I
|
List
of exempted commodities
|
|
|
II
|
Bullion,
articles made of gold, silver
and precious metals including jewellery made of the
above.
|
1%
|
|
III
|
List
of goods charged at 4%.
|
4%
|
|
IV
|
Petroleum,
liquor, country liquor, narcotics, molasses, rectified
spirit, Lottery tickers, Brake Fluids
|
20%
|
|
V
|
List
of exempted dealers
|
|
|
VI
|
List
of organizations who can claim refund
|
|
|
VII
|
Automobiles,
fuel, clothing, Food, Beverages, Entertainment devices,
AC, Tobacco-If used by a dealer who does not deal in these
either as finished products or as raw materials, in the
course of his business.
|
|
|
|
Works
Contract
|
12.5%
|
|
|
Other
goods not included in Schedules I, II, III, IV or VII.
|
12.5%
|
|
MAHARASHTRA[SEC 2(26), 5,6]
| Schedule |
Rate
of Tax |
| A |
NIL |
| B |
1% |
| C |
4% |
| D |
20% |
| E |
12.5% |
WEST
BENGAL
| Schedule |
Rate
of Tax |
| A |
NIL |
| AA |
Zero-Rated |
| B |
1% |
| C |
4% |
| CA6 |
12.5% |
E-Schedule IV of
WB Sales Tax Act |
17.5, 20 25 50% |
PUNJAB:[SEC 8]
| Schedule |
Rate
of Tax |
| A |
NIL |
| B |
4% |
| C |
1% |
| D |
20% |
| E |
30% |
| F |
12.5% |
| G |
List
of Organisation entitled to refund. |
| H |
List
of goods on which purchase tax is leviable |
Summary
:
The rated of taxes under VAT have been uniformly followed by all taxes. However, there are differences in the way some products have been grouped by the states, and this is being addressed by the Empowered Commitee.
| There is a difference in the numbering of this Schedule, with CA
adopted in the Schedule and ‘D’ adopted in the Act.
Both are hosted in the website of the West Bengal
Commercial Tax Department. |
|
