The Hindu Business Line : State VAT commissioners to meet on April 15

STATE sales tax/value added tax (VAT) commissioners are to meet here on April 15 under the aegis of the Empowered Committee of State Finance Ministers on VAT to discuss various issues arising from the implementation of VAT in 18 States from April 1.

This meeting would come as a precursor to the meeting of the VAT panel (State Finance Ministers) slated later this month for review of the situation arising from VAT introduction.

"The State VAT commissioners will meet here next Friday (April 15)," Mr Ramesh Chandra, Member-Secretary, Empowered Committee of State Finance Ministers on VAT told Business Line here.

Meanwhile, industry associations are gearing up to make a number of representations on VAT implementation. Many problems are likely to be highlighted including the most controversial issue of VAT rates. The absence of a VAT rate between 4 per cent and 12.5 per cent has aggrieved sections of industry, especially those whose product rates have shifted from 8 per cent sales tax to 12.5 per cent VAT rate. Some of them were unhappy that their products have been moved out of the exemption list and brought under VAT.

Further, there are issues like the absence of uniformity on VAT rates (i.e. the same product attracting different rates in different States) that may be raised by industry.

Besides bringing the issue of continuation of check posts to the attention of the empowered committee, some of the industry representatives are planning to contend that there is no uniformity on the timeframe for granting refunds.

On the part of the VAT commissioners, the issue of trade distortion that could be caused by the decision of some States to keep away from VAT implementation could come up for discussion.

Besides the BJP-ruled States of Rajasthan, Madhya Pradesh, Gujarat, Jharkhand and Chhattisgarh, others like Uttaranchal, Tamil Nadu and Uttar Pradesh have not introduced the new tax system from April 1.

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