Gujarat exempts diamond, zari from VAT, reduces tax on other items
Gandhinagar, Mar 29 (UNI) With Value-Added Tax (VAT) coming into force in Gujarat from April 1, Minister of State for Finance Saurabh Patel today announced a number of amendments under Section 98 of the Gujarat VAT Act 2003 through Gujarat VAT Rules 2006 notified on March 23.
Making a statement in the State Assembly, he said the local self-government organisations have been empowered to collect VAT which would be implemented from the date to be announced by the State Government.
The Minister said the local bodies already have the machinery to levy and collect municipal, property and other taxes. He exuded confidence that with the implementation of VAT, the State would expedite its local development works.
He said that the Gujarat Government has decided to exempt textiles, tobacco and sugar from the tax for one year, except when these commodities are imported. This is in tune with Empowered Committee's recommendation, unless the Central Government decided otherwise.
The Minister said the government has decided to exempt or reduce tax on certain items on receiving suggestions from various traders groups. In case of diamond, it has been totally exempted (from one per cent), zari work and local seeds (from four per cent). In case of stone chips, blacktrap, rubble and sand, it has been fixed at four per cent, instead of 12.5 per cent.
Similarly, he said, the State Government has decided to charge tax at only two per cent from bakeries and brick manufacturers and four per cent from hotels and restaurants under Section 14 of the Act.
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