20 February 2018
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Indirect Tax Value Added Tax 002005

  • Just 4 states cut VAT on petrol, diesel: Dharmendra Pradhan
    Feb 06, 2018
    Just 4 states and one union territory have cut local sales tax or VAT on petrol and diesel since the October 2017 decision of the Centre to reduce excise duty on the two fuels, Oil Minister Dharmendra Pradhan said today. As petrol and diesel prices soared to a three-year high, the Centre on October 3, 2017 reduced excise duty on petrol and diesel by Rs 2 per litre each and asked states governments to match it with a cut in VAT. In a written reply to a question in the Lok Sabha, Pradhan said: "Four state governments and one Union territory have reduced the VAT on petrol and diesel."
  • Excise, VAT may co-exist with GST on fuel
    Dec 21, 2017
    The goods and services tax (GST) Council is trying to build consensus among states over imposing the GST on petroleum products by allowing the Centre and states to levy existing taxes over a 28 per cent GST rate.States have been averse to including fuel in the GST because levies on it account for 40 per cent of their revenue. They could change their mind if allowed to continue with value-added tax (VAT) and other imposts on fuel above the GST rate. The Centre, which is willing to impose the GST on fuel, may also be permitted to charge excise duty above the GST rate. “Petroleum products account for 40 per cent of states’ revenues.
  • Madhya Pradesh government cuts VAT on petrol, diesel
    Oct 14, 2017
    The Madhya Pradesh government on Friday reduced value-added tax (VAT) on petrol and diesel by 3% and 5%, respectively. The state government also withdrew the additional cess of Rs1.50 per litre on diesel.Notably, the Bharatiya Janata Party (BJP)-ruled Gujarat and Maharashtra states had reduced VAT on these fuels earlier this week.“The Madhya Pradesh government has decided to reduce VAT on petrol by 3%. The VAT on diesel is reduced by 5%. Moreover, the additional cess of Rs1.50 per litre has also been withdrawn,” state finance minister Jayant Malaiya announced after a meeting with chief minister Shivraj Singh Chouhan.
  • VAT cut on petrol by states raises hope of inclusion of fuel under GST
    Oct 11, 2017
    A bipartisan consensus emerged on Tuesday after Gujarat, Maharashtra and Himachal Pradesh cut value added tax (VAT) on petrol and diesel in tandem with the central government’s decision last week to reduce excise duty, stoking expectations that the inclusion of petroleum products in the goods and service tax (GST) may happen sooner. The actions of the three state governments will put pressure on other states to cut VAT on petrol and diesel; it also signalled the possibility of coordinated responses even on products outside GST—in this case it could have a salutary effect on retail inflation. Bharatiya Janata Party (BJP)-ruled Gujarat reduced VAT on petrol and diesel by 4%, becoming the first state to give relief to consumers from a recent surge in oil prices.
  • Gujarat slashes VAT on fuel prices by 4%
    Oct 10, 2017
    The Bharatiya Janata Party (BJP)-ruled Gujarat has decided to slash the Value-Added Tax (VAT) on fuel prices in the state.Chief Minister Vijay Rupani, while addressing the media, said, "We are cutting down the VAT on fuel by 4 per cent. Hence, the price of petrol will come down by Rs. 2.93, and that of diesel by Rs, 2.72."Earlier also, Rupani, expressing compliance with the Centre's directive to slash the VAT on fuel in the states, had said that the state government would reduce taxes on petrol and diesel in the coming two or three days.
  • Kerala gives UDAN flights a boost, cuts VAT on jet fuel by 5 pct
    Sep 29, 2017
    Running the extra mile for the Centre’s regional connectivity scheme, UDAN, the Kerala government has trimmed its VAT rate on aviation turbine fuel (ATF) by 5% from the existing 28.75%. This would be valid for a period of five years. The Centre had requested states to reduce VAT on ATF by 1%, to encourage flight services connecting important cities in the country. However, to add to the incentivisation in good measure, Kerala decided to reduce VAT by 5%, an official release said. A cabinet meeting chaired by CM Pinarayi Vijayan took the decision.
  • Uniform Petro Tax may Not Remain a Pipe Dream
    Sep 15, 2017
    States have agreed to cap value-added tax (VAT) on natural gas at 5% and lower it on other petroleum products such as petrol and diesel used by the manufacturing sector as an input. That could mark a significant breakthrough toward uniform nationwide prices of petroleum goods. The Goods and Services Tax (GST) Council will take up the scheme once it is formulated by the states.“The council will take a final call on the proposal,“ a senior government official told ET. “There have been discussions between the Centre and states at the officials' level.“
  • Maharashtra government offers VAT benefit to realty buyers
    Jun 01, 2017
    In a move that would impact all real estate transactions across the state, the Maharashtra government has issued a notification to levy Value Added Tax (VAT) based on staggered payments received from homebuyers. With this, buyers making payments before June end for their under-construction properties will be charged 1% VAT, while payments after that will attract 6% State GST as part of GST regime.Currently, property transactions attract VAT at 1% of the transaction value payable at the time of registration of the agreement. However, with the amendment in the Maharashtra VAT Act, the buyer will have to pay the tax at the time of making staggered payments to the developer.
  • Petrol set to cost more in Goa as Budget hikes VAT by 15%
    Mar 25, 2017
    Petrol prices in Goa are set to soar as Chief Minister Manohar Parrikar today announced a 15 per cent hike in value-added tax (VAT) on the fuel.The Goa government had kept petrol prices below Rs.60 per litre during the last five years by reducing the VAT on it.“My government, since the last five years, has been able to maintain the promise given to the people of the state in 2012, and has ensured that the prices of Motor Spirit (petrol) did not cross the threshold level of Rs.60 per litre,” Parrikar said presenting the State Budget today.“The prices of petrol in Goa are significantly lower compared to the neighbouring states of Karnataka and Maharashtra, where this fuel is sold at Rs.72 and Rs.76 respectively,” he said.Entry tax abolition “It is time to review this measure, in view of the enhanced spending and provisions made for various existing and new initiatives in the Budget.
  • Delhi cuts VAT on ATF to 1% for regional flights; other states to announce the same soon
    Mar 08, 2017
    The Delhi government today announced reduction in Value Added Tax (VAT) on jet fuel for regional flights flying out of Delhi airport. Delhi's deputy chief minister and finance minister Manish Sisodia announced that VAT on ATF for regional flights will now be charged at the rate of 1 per cent from earlier 25 per cent in Delhi.The request for reduction was made by the aviation ministry in February this year. According to Centre's directive under regional connectivity scheme, other state governments will also have to reduce the VAT to 1 per cent on jet fuel.
  • States record jump in VAT collections after note ban
    Jan 09, 2017
    Demonetisation seems to have led to a windfall for states thanks to a spurt in value added tax (VAT) collections since Prime Minister Narendra Modi’s November 8 announcement, according to the latest data. This appears to undermine the contention that the cash crunch punctured demand after the government invalidated Rs 500 and Rs 1,000 currency notes.
  • Cut in VAT makes cell phones cheaper in Telangana
    Dec 29, 2016
    Good news for phone users. The prices of cell phones are set to come down in Telangana, as the VAT on them has been reduced from 14.5 per cent to 5 per cent. The State Legislative Assembly on Wednesday adopted the Value Added Tax (VAT) Amendment Bill, seeking to reduce VAT on cell phones. The bill was introduced by Minister T Srinivas Yadav. Congress, Bharatiya Janata Party and Telugu Desam Party members welcomed the Bill.
  • Maharashtra government hikes VAT on petrol by Rs 1.50 per litre
    Sep 17, 2016
    Maharashtra government today hiked the value added tax (VAT) levied on petrol by Rs 1.50 per litre. The measure is expected to generate additional revenue of Rs 600 crore, a senior official said. The state has not touched diesel prices, fearing losing revenue to neighbouring states, he added.
  • Goa government reduces VAT on petrol to keep prices under Rs 60 per litre
    May 18, 2016
    Keeping its promise to not allow petrol prices exceed Rs 60 per litre, the Goa government today reduced the value added tax (VAT) levied on the fuel by two per cent after the hike announced last night."The Goa government has reduced the VAT on petrol by 2 per cent brining it to 20 per cent from 22 per cent," a senior officer from state commercial tax department said.
  • Amazon, traders face probe over false Cenvat credit claims
    May 12, 2016
    E-commerce giant Amazon and 50 of its sellers are facing investigations for allegedly falsely claiming Central Value Added Tax (Cenvat) credit and evading tax of about Rs 118 crore. Officers of the Directorate General of Central Excise Intelligence (DGCEI) have conducted search operations at Amazon's business premises across the country and at its headquarters in Bengaluru, in January. "So far, the total tax evasion we have been able to establish is to the tune of Rs 118 crore, which could increase. We will soon issue show cause notices to respective sellers," a senior officer told the Business Standard. "We have recorded the statement of Amazon executives and are assessing the details provided by them," he added.
  • Maharashtra hikes general VAT rate marginally
    Mar 19, 2016
    The Maharashtra government has marginally increased the general VAT rate from 5 to 5.5 per cent in the State budget. The increase is in anticipation of revenues losses when Goods and Services Tax (GST) gets implemented. Finance Minister Sudhir Mungantiwar said in his budget speech that there is a likelihood of the State suffering revenue loss from the implementation of Goods and Services Tax and said that the compensation from the Centre will depend on the revenue collection of States in the years prior to implementation of GST. While this makes goods and services in the State dearer by 0.5 per cent, there are other product-specific changes in the tax structure.
  • Goa budget raises VAT on petrol to 22%
    Mar 17, 2016
    Commuters and tourists in Goa will have to shell out extra money as the State budget on Wednesday proposed an increase of 7 per cent in value added tax (VAT) on motor spirit.Chief Minister Laxmikant Parsekar, who holds finance portfolio, justified the hike in his budget speech, saying that as crude oil prices had decreased in the international market, the government wanted to increase VAT on motor spirit from 15 to 22 per cent.When the BJP government came to power in March 2012, the then Chief Minister Manohar Parrikar, as promised in the party election manifesto, had abolished VAT on petrol which had resulted in decrease in petrol price by Rs. 11, making cheapest in the country.
  • VAT relief for traders who suffered losses during Jat quota agitation
    Mar 03, 2016
    Haryana Government today decided in principle to give relief in Value Added Tax (VAT) to those traders and businessmen who suffered losses during the recent Jat quota agitation in the state. A decision to this effect was taken in a meeting of the State Cabinet which met under the chairmanship of Chief Minister Manohar Lal Khattar here.
  • Delhi govt increases VAT on diesel, petrol
    Jan 20, 2016
    Following in the footsteps of the Union government, the Delhi government has increased value added tax (VAT) on petrol and diesel for the second time this financial year. With this, petrol in Delhi would cost 96 paise a litre more and diesel 53 paise more. The Delhi government on Monday night raised VAT on petrol to 27 per cent from 25 per cent and on diesel to 18 per cent from 16.6 per cent. A pollution cess of Rs 0.25 per litre will also be levied on diesel. Petrol now costs Rs 59.99 a litre in Delhi and diesel Rs 44.71. Last week, the Union government raised excise duty on petrol by 75 paise a litre and the duty on diesel by Rs 1.83. Taking advantage of falling global prices, the National Democratic Alliance government has hiked excise duty on the two fuels four times this financial year. In 2014-15 too, the excise duty was raised four times.
  • Odisha govt hikes VAT on petrol, diesel by 3%
    Jan 06, 2016
    The Odisha government on Tuesday increased the Value Added Tax (VAT) on petrol and diesel by 3% each, making the fuel dearer. The finance department issued a notification stating that the VAT on petrol and diesel would be 26% from earlier rate of 23%. Petrol and diesel across the state will cost more by Rs 1.39 per litre and Rs 1.14 per litre respectively from today.
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