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Introduction of VAT may hike prices of petrol, diesel in Guj

Written by: Staff

Gandhinagar, Mar 30: With the introduction of the value-added tax (VAT) in Gujarat from April one, the prices of petrol and diesel are likely to increase marginally, Gujarat Minister of State for Finance Saurabh Patel said today.

Mr Patel told mediapersons here that the petrol and diesel will be levied of VAT at a rate of 26 and 24 per cent, respectively, per litre on the royalty paid to the dealers. Thus, the dealer who at present get Rs 0.85 and Rs 0.51 as royalty on petrol and diesel, respectively, from the oil-companies, will have to pay the VAT of Rs 0.22 and Rs 0.13, respectively, per litre.

However, Mr Patel was quick to clarify that the oil-companies which are supplying petrol and diesel to the petrol pump owners may take VAT on themselves as these are very marginal amounts, rather than passing them on to the customers.

He further clarified that any price hike charged beyond Rs 0.22 on petrol and Rs 0.13 on diesel per litre from April 1 by the oil-companies or petrol pumps owners will not be due to implementation of the VAT in Gujarat.

Making few more amendments under section 98 of the Gujarat VAT Act 2003 through Gujarat VAT Rules 2006 notified on March 23, the Minister said, the exemption have been given to general, eatable and handicraft articles, while agriculture inputs, 'kirana', spices and packaging materials will be levied VAT at four per cent.

He said, the Gujarat Sales Tax department will be known as the Commercial Tax department from April one.

Mr Patel also said Gujarat is the first State of the country to develop a software for calculation of VAT and to make it available at free of cost through its website www.commercialtax.gujarat.gov.in.

The software has been developed by Tata Consultancy Limited (TCL) and will be available in both Gujarati as well as English languages.

The website has every facility a dealer or a trader needs, ranging from calculation of VAT to prepare a statement based on it.

Since the website launched just few days ago, so far over 30,700 persons have visited it and over 800 dealers have made their registration.

Though there are over 300,000 dealers in Gujarat, initially, the Government is planning to accept online payment of VAT from only big dealers, numbering around 800, Mr Patel added.


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