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Jammu, Jan 9 (UNI) Jammu and Kashmir government today said it is considering the ex-servicemen's demand of Value Added Tax (VAT) exemption in the CSD items.

''The request for exemption of VAT in CSD canteens is under consideration of a Cabinet Sub-Committee,'' state's Finance Minister Tariq Hamid Qarra informed the Legislative Assembly.

''The minutes of the meeting of the sub-committee have been received and are under processing for appropriate action,'' the House was informed.

On exemption of VAT in CSD canteens, the House was told that VAT rate levied in Jammu and Kashmir was as per the rates approved for adoption by the empowered committee of the state Finance Minister.

The VAT regime was introduced in the state (w.e.f April, 2005), replacing the General Sales Tax Act (GST) with regard to the sale of goods.

In the state, the CSD canteens were taxed under GST till VAT was introduced after March 31, 2005, the Minister said asserting that the latter is a successive tax regime to the former.

Sale of liquor through CSD was still an exception as it continued to be taxed under GST, he informed.

UNI VBH/VJ BDP RS1816