Tag Archives: VAT

Diesel-Petrol VAT rate slashed in MP: Additional surcharge on diesel abolished

Newsroom24x7 Staff

Bhopal: Madhya Pradesh Chief Minister Shivraj Singh Chouhan today (13 October 20`17) announced the decision to reduce the VAT rate on diesel and petrol.

The Chief Minister further announced that the additional surcharge of Rs. 1.50 per litre charged on diesel also has been abolished.

The new rates will come in effect from midnight today. The diesel being sold at the rate of Rs. 63.31 per liter will be sold at Rs. 59.37 per liter after midnight.

Chouhan said that this decision for reduction in diesel and petrol rates has been taken to give relief to the common people and the farmers keeping in view their requirement. He said that the reduced rates of diesel and petrol will reduce the cost of freight and the goods will become cheaper.

The Chief Minister said that VAT on diesel has been reduced by 5 percent and additional surcharge of Rs. 1.50 charged on diesel has also been abolished. Similarly, VAT on petrol has been reduced by 3 percent.

Jaitley to Chief Ministers: Lower VAT rates on petroleum products used for manufacturing

Newsroom24x7 Staff

New Delhi: Union Minister of Finance, Defence and Corporate Affairs, Arun Jaitley has written to State Chief Ministers urging the States to reduce burden of Value Added Tax (VAT) on Petroleum Products used as inputs in making of goods after the introduction of Goods and Services Tax (GST).

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The letter by Finance Minister highlights a concern being raised by the manufacturing sector in the country regarding the rise in input costs of petroleum products happening on account of transition to Goods and Services Tax regime. In the pre-GST regime, because the petroleum products as well as the final goods produced both attracted VAT, input tax credit of petroleum products being used as inputs by manufacturers was allowed to varying extent by different States. However, in the post-GST scenario, the manufactured goods attract GST while the inputs of petroleum products used in the manufacturing attract VAT and, therefore, it would lead to cascading of taxes. In view of this, in the pre GST regime certain States had lower rate of 5% VAT on Compressed Natural Gas used for manufacturing of goods. Some States also had lower rate of VAT on diesel being used for manufacturing sector.

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Jaitley has requested other States also to explore the possibility of having a lower rate of VAT on petroleum products used for manufacturing of those items on which there is GST, so that there is minimum disruption in the costing of goods.