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Andhra Pradesh State Assembly on Thursday passed the Andhra Pradesh Value Added Tax (Amendment) Bill, 2021 and the Andhra Pradesh Goods and Services Tax (Amendment) Bill, 2021 to reduce VAT rates on alcoholic beverages.
Speaking on the occasion, Buggana Rajendranath Reddy, Finance Minister, said under the Andhra Pradesh Value Added Tax Act, 2005, liquor for human consumption is taxed presently at the rates ranging from 130 per cent to 190 per cent.
Stating that Telangana has reduced the VAT rate to a flat 70 per cent on all categories of liquor for human consumption during 2016, the Finance Minister said the government had decided to rationalise the rates of VAT on various categories of liquor with the neighbouring States and hence brought in Andhra Pradesh Value Added Tax (Amendment) Bill, 2021 to reduce the VAT rates on alcoholic beverages.
Referring to the Andhra Pradesh Goods and Services Tax (Amendment) Bill, 2021, the Finance Minister said Goods and Services Tax provides for levy and collection of taxes on intra-State supply of goods and services by the State Government and the amendments were being made for checking tax evasion or to reduce the compliance burden of tax payers.
The Bill was tabled to amend Section 7 of Andhra Pradesh Goods and Services Tax Act, 2017 to ensure levy of tax on activities or transactions involving supply of goods or services by any person, other than an individual, to its members or constituents or vice-versa, for cash, deferred payment or other valuable consideration.
Input tax cedit
The Minister said the Bill intended to amend Section 16 of the Act to provide that input tax credit on invoice or debit note may be availed only when the details of such invoice or debit note has been furnished by the supplier in the statement of outward supplies and such details have been communicated to the recipient of such invoice or debit note.
Another amendment was in Section 35 and Section 44 of the Act to remove the mandatory requirement of getting annual accounts audited and the reconciliation statement submitted by specified professional and to remove the mandatory requirement of furnishing a reconciliation statement duly audited by specified professional and to provide for filing of the annual return on self-certification basis.
The Bill passes today amended Section 50 of Act to charge interest on net cash liability retrospectively, the minister said and added that the amendment of Section 74 was to make seizure and confiscation of goods and conveyances in transit a separate proceeding from the recovery of tax, according to a release.
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