Budget Highlights for the State of Gujarat
1. E-Commerce Transactions to be covered under purview of Entry Tax
It has been proposed to impose Entry tax on the goods coming in the State through e-commerce as the trade of State dealers is affected adversely & also the State suffers loss of tax revenue due to sale of goods in the State from outside the State under e-commerce transactions.
2. Pay 100% provisional refund within 30 days to small dealers
In order to promote trade friendly measures in case of small dealers, it has been proposed to pay 100% provisional refund within 30 days from the date of submission of all documents where refund due is upto Rs. 1 lakh. This will be subject to the following conditions:
The dealers whose annual refund upto Rs. 1 lakh has been paid in the previous year will get this benefit in the subsequent year.
The dealer should be holding Registration Certificate for more than 2 years.
3. Amnesty Scheme for recovery of tax dues
The recovery of tax dues under the Sales Tax Act and the VAT Act has been pending due to issues of interpretation, non-availability of statutory forms and pending before Appellate Authority etc. Thus tax amount actually due to the State remains outstanding. To address this Amnesty Scheme has been proposed as follows:
Dues outstanding upto 31.12.2015 in the Sales Tax Act, VAT Act, Motor Spirit Act and CST Act will be covered under the scheme.
Interest and penalty will be remitted on full payment of outstanding principal tax amount. However in case of tax evasion, full amount of principal tax, interest and 25% of penalty amount will have to be paid.
The scheme will extend to the cases in appeal also where the appeal has been withdrawn.
4. Products proposed to be fully exempted or taxed at a lower rate
It has been proposed to fully exempt the following products for giving a boost to the economy.
Bamboo and bamboo‐articles (except furniture)
Pedal Rickshaw & cycle rickshaw
Sanitary napkins & adult diapers
Ceramic products are proposed to be charged at a lower tax rate.
Further, rate of electricity duty charged from hotels/ restaurants & private hospitals is proposed to be reduced.
5. Products proposed to be taxed at higher rate as compared to present tax rate
It has been proposed to charger a higher rate of tax on following products:
Vehicles purchased by institutions (institutional purchases)
Luxury car/ SUV & luxury two wheeler
It has also been proposed to levy tax (including additional tax) on industrial salt used in manufacture of goods.