The state commercial tax department of the state of Gujarat has given a nod to reduce Value Added Tax (VAT) from 15 to 5 percent for 70 odd chemicals used in textile and pharmaceutical sectors. The new chemical rates will be implemented with immediate effect.
Moreover, the state government has exempted silk yarn from entry tax and imposed 4 percent tax on the import of stainless steel, in the state.
The government had increased VAT from 5 to 15 percent, six months ago, which took its toll on a number of new investments and existing businesses, both, in textile and pharmaceutical sectors.
As the increased VAT affected these sectors, the Gujarat government cut down VAT rates to the rates prevalent in all states, informed Mr. Mehul Gandhi, Gujarat Sales Tax Bar Association (GSTBA).
Fibre2fashion News Desk - India
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