VAT Updates - Apr-2016

Gujarat VAT Budget - 2016-17

  1. Bamboo materials (except furniture) is now made tax free from 5% VAT.
  2. Cycle rickshaw & paddle rickshaw is now made tax free from 5% VAT.
  3. Mosquito net is now made tax free from 5% VAT.
  4. Sanitary napkin & adult diapers is now made tax free from 5% VAT.
  5. Animal frozen semen is made now tax free from 15% VAT.
  6. Ceramic products tax reduced from 15% to 5% VAT.
  7. Vehicles (except school bus, trucks, college bus & passenger bus) vat increased from 15% to 20% for firms, associations, government bodies, trust & companies.
  8. Luxury vehicles if more than 15 lakhs & two wheelers more than 2.5 lakh will be liable to 20% VAT before it was 15% VAT.
  9. Industrial salt is made taxable 5% before it was tax free.
  10. All e-commerce goods are now liable for entry tax.
  11. Provisional refund under 1 lakh should be paid in 30 Days given that all the necessary and documents must be submitted within said time and the dealer should have been registered for minimum of 2 years.

Amnesty Scheme

Amnesty scheme for all tax disputes till 31/12/2015 to be introduced the salient features are as under –

  1. For all matters other than matter of tax evasion if dues are paid than levy of interest and penalty are disposed of.
  2. If there is tax evasion than tax+interest+25% of penalty should be paid.
  3. This amnesty scheme is applicable even to appeals given that the appeals are withdrawn.


  1. E-Payment facility was postponed for tax+Interest+penalty exceeding Rs. 50000/- in one month or quarter as per payment under Guj Vat Rules. The said assesses can make manual payments till 22nd Feb 2016 to say till for the payment of Jan-2016.
  2. The time limit to file monthly and quarterly returns was reduced to 30 Days. However due to lot of resentment among trade association the due date to file this returns now has been increased from 30 Days to 45 Days.

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Financial Management