CG Commercial Tax Dept has finalised VAT and CST after it looses the case in High Court on different tax structure in same goods (under Industry classification as per capital invested in Plant and Machinery).
The much awaiting tax has released today finally by the Chhattisgarh Commercial Tax Department. It is going to be applicable with effect from 1st of Feb’15 on all steel goods,except MS Ingot i.e 2% (VAT) against declaration.
CST- 2% against ‘C’ form.
The new notification copy is attached for your perusal below.
On 9 Jan’15, Chhattisgarh High Court had ordered a uniform VAT regime for state based Steel Industry. The court’s decision implied that CG Notification No 60/2014 is the breach of article no. 301 and 304 of Indian Constitution Act that give rights to free flow of trade to every Citizen of India.
The C.G. government notification no. 60 in the budget FY-15 defines different tax structure on same product on the basis of industry size. The court also says the notification is also violation of CG Government Tax Structure law article no. 14 that clearly says each goods will taxed uniformly and to all class of dealers.
As per a leading VAT lawyer and consultant, “Rate of tax on iron and steel CST 2% from 01.02.2015. VAT as per notification 5% from 09.01.15. But as per law any notification can be rescinds or issued from prospective date if it enhance the rate of tax. As per my opinion VAT up to 30.01.15 – 3% for all and 5 % for all from 31.01.2015. For Ingot 2% against declaration will continue”.