VAT In Gujarat

Background

• Chief Ministers’ Conference in November 1999 – All states agree to introduce VAT in place of Sales Tax from April 2001
• State Finance Ministers decide on 7.1.2002 to introduce VAT from 1.10.2002
• Steps taken by Gujarat for tax reforms:
• Slabs of sales tax rates reduced from 23 to 6
• Turnover Tax abolished from April 1997
• No. of prohibited goods (not eligible for tax set off) reduced from 73 to 19
• Sales Tax incentives to industries stopped from 1.1.01
• Computerization of the Sales Tax Department
• Deemed and simple assessments for small dealers
• Dealers are registered afresh – the new registration to be valid for VAT