Company : Sol Infotech Pvt. Ltd. Website : www.courtkutchehry.com Gujarat Value Added Tax (Amendment) Act, 2008 09 of 2008 [29 March 2008] CONTENTS 1. Short Title And Commencement 2. Amendment Of Section 2 Of Guj. 1 Of 2005 3. Insertion Of New Section 5A In Guj. 1 Of 2005 4. Amendment Of Section 7 Of Guj. 1 Of 2005 5. Amendment Of Section 9 Of Guj. 1 Of 2005 6. Amendment Of Section 11 Of Guj. 1 Of 2005 7. Amendment Of Section 14 Of Guj. 1 Of 2005 8. Amendment Of Section 14B Of Guj. 1 Of 2005 9. Amendment Of Section 59B Of Guj. 1 Of 2005 10. Amendment Of Schedule I To Guj..1 Of 2005 11. Amendment Of Schedule Ii To Guj. 1 Of 2005 Gujarat Value Added Tax (Amendment) Act, 2008 09 of 2008 [29 March 2008] AN ACT further to amend the Gujarat Value Added Tax Act, 2003: It is hereby enacted in the Fifty-ninth Year of the Republic of India as follows:- 1. Short Title And Commencement :- (1)T his Act may be called the Gujarat Value Added Tax (Amendment) Act, 2008. (2)It shall come into force on the 1st April, 2008. 2. Amendment Of Section 2 Of Guj. 1 Of 2005 :- In the Gujarat Value Added Tax Act, 2003 (Guj. 1 of 2005) (hereinafter referred to as "the principal Act"), in section 2, - (1)before clause (1), the following clause shall be inserted, namely:- "(1A)"additional tax" means the additional tax leviable and payable under sub-section (1A) of section 7 or sub-section(6) o f section 9;" (2)after clause (36), the following clause shall be inserted, namely:- (37)"zero rated sale" means a sale of goods by a registered dealer to another registered dealer on which the rate of taxleviable shall be zero but tax credit on the purchase related to that saleis admissible:" 3. Insertion Of New Section 5A In Guj. 1 Of 2005 :- In the principal Act, after section 5, the following section shall be inserted, namely:- "5A.Zero rated sale. The following sale shall be zero rated sale for the purpose of this Act and taxcredit on the purchase related to such sale shall be allowed subject to such conditions as may be prescribed:- (1)Sale of goods to the Developer or Co-developer of Special Economic Zone as defined in the Gujarat Special Economic Zone Act, 2004 (Guj. 11 of 2004); or (2)sale of goods to a unit carrying on its business in the processing area or in the demarcated area of Special Economic Zone and approved as such by the Approval Committee as defined in the Gujarat Special Economic Zone Act, 2004(Guj. 11 of 2004): Provided that the sale of goods specified in Schedule III shall not be zero rated sale: Provided further that the sale of certain goods or sale of goods by any dealer or class of dealers as may be specified by the State Government by notification in the Official Gazette, shall not be zero rated sale.". 4. Amendment Of Section 7 Of Guj. 1 Of 2005 :- Inthe principal Act, in section 7, after sub-section (1), the following sub-section shall be inserted, namely: - "(1A) Subject to the provisions of this Act, there shall be further levied an additional tax on the turnover of sales of goods liable to be taxed under sub- section (1). at the rate of- (i) two and half paise in the rupee on the goods specified in the entries at serial numbers 25, 46B, 48A, 49A, 49B, 51A and 87 in Schedule II; and (ii) one paisa in the rupee on the goods specified in the entries in Schedule II other than the entries mentioned in clause (i) above: Provided that the additional tax shall not be levied on the sale of, - (a)goods declared to be of special importance in section 14 of the Central Sales Tax Act, 1956 (74 of 1956); (b)goods specified in entry at serial number 13 in Schedule II; and (c)such goods as the State Government may, by notification in the OfficialGazette, specify.". 5. Amendment Of Section 9 Of Guj. 1 Of 2005 :- Inthe principal Act, in section 9, after sub-section (4), the foltowingsub-sections shall be inserted, namely:- "(5)Where a dealer liable to pay tax under this Act purchases taxable goods saleof which is zero rated under section 5A and the goods so purchased by himare - (i)consigned or dispatched for branch transfer or to his agent outside theState, (ii)used as raw materials in the manufacture or in the packing of goods sodispatched outside the State in the course of branch transfer or consignmentor to his agent outside the State, (iii)used as fuel for the manufacture of goods, (iv)used as raw materials or capital goods in manufacture of goods specified inSchedule I or goods exempt from the whole of the tax by a notification undersub-section (2) of section 5 or in the packing of goods so manufactured, (v)used as fuel or capital goods i n generation of electrical energy includingcapti\(e power, (vi)not connected with his business, (vii)used as fuel in motor vehicles, (viii)used as capital goods in transfer of property in goods (whether as goods orin some other form) involved in execution of works contract, (ix)used for transferring the right to use for any purpose (whether or not for aspecified period), for cash, deferred payment or other valuableconsiderations, or (x)used for any other purpose as may be specified by the State Government bynotification in the Official Gazette, then such dealer shall be liable topay purchase tax on the turnover of such purchases at the rate set outagainst each of such goods specified in Schedule II. (6)Subject to the provisions of this Act, there shall be further levied anadditional tax on the turnover of purchases of goods liable to be taxedunder sub-section (1), (2), (3), (4) or (5), at the rate of- (i)two and half paise in the rupee on the goods specified in the entries atserial numbers 25, 468, 48A, 49A, 498, 51A and 87 in Schedule II, and (ii)one paisa in the rupee on the goods specified in the entries in Schedule IIother than the entries mentioned in clause (i) above: Providedthat the additional tax shall not be levied on the purchase of, - (a)goods declared to be of special importance under section 14 of the CentralSales Tax Act, 1956 (74 of 1956); (74 of 1956) (b)goods specified in entry at ser ell number 13 in Schedule II; and (c)such goods as the State Government may, by notification in the OfficialGazette, specify.". 6. Amendment Of Section 11 Of Guj. 1 Of 2005 :- Inthe principal Act, in section 11,- (1)in sub-section (1), in clause (a), in sub-clause (ii), for the words,brackets and figures "sub- section (1) or (2)", the words, bracketsand figures "sub-section (1), (2), (5) or (6)" shall besubstituted; (2)in sub-section (3), in clause (b) and in the proviso to clause (b), for thewords "turnover of purchases", the words "taxable turnover ofpurchases within the State" shall be substituted; (3)in sub-section (5), the existing paragraph below clause (p) shall benumbered as paragraph (I) and after paragraph (I) as so numbered, thefollowing paragraphs shall be inserted, namely:- "(II)Notwithstanding anything contained in clause (d) or (dd) in this subsectionand subject to such conditions and in such manner as may be prescribed, aregistered dealer shall be allowed to claim tax credit for the taxable goodsheld in stock on the date of registration which are purchased after 15thApril, 2008 and during the period of one year ending on the date ofregistration. (III)Notwithstanding anything contained in clause (nn) in this sub-section andsubject to such conditions and in such manner as may be prescribed, aregistered dealer, whose permission to pay lump sum tax under section 14, - (a)is no longer valid on account of total turnover exceeding rupees fiftylakhs, or (b)is cancelled on request by such dealer, andbecomes liable to pay tax under section 7, shall be allowed to claim taxcredit for the taxable goods held in stock which are purchased after 15thApril, 2008 and during the period of one year ending on the date ofliability to pay tax under section 7.". 7. Amendment Of Section 14 Of Guj. 1 Of 2005 :- In the principal Act, in section 14,- (a) in sub-section (1), in clause (a), in the proviso, - (1)in clause (ii), - (i) before the words "purchases the goods", the words "has purchased in the previous year or" shall be inserted; (ii) before the words "imports", the words "has imported in the previous year or" shall be inserted; (2)in clause (iii), before the words "receives the goods", the words" has received in the previous year or" shall be inserted; (3)in clause (iv), before the words "engaged in the", the words was engaged in the previous year or" shall be inserted; (4)in clause (v), before the words "effects the sales", the words "has effected in the previous year or" shall be inserted; (b) in sub-section (4), for the words, brackets and figures "purchase taxleviable under sub-sections (1) and (3)", the words, brackets and figures "tax leviable under sub- sections (1), (3) and (6)" shall be substituted. 8. Amendment Of Section 14B Of Guj. 1 Of 2005 :- In the principal Act, in section 14B, in sub-section (5), for the words, brackets and figures "sub-sections (1), (3) and (4) of section 9",the words, brackets and figures "sub-sections (1), (3), (4) and (6) of section 9" shall be substituted. 9. Amendment Of Section 59B Of Guj. 1 Of 2005 :- Inthe principal Act, in section 598, - (1)in sub-section (3), in clauses (a) and (b), for the words "equal to twopaise in a rupee", the words "at the rate as may be specified bythe State Government by notification in the Official Gazette" shall besubstituted; (2)sub- section (15) shall be deleted. 10. Amendment Of Schedule I To Guj..1 Of 2005 :- Inthe principal Act, in Schedule I, in the entry at serial No. 23, thesub-entry (ii) shall be deleted. 11. Amendment Of Schedule Ii To Guj. 1 Of 2005 :- Inthe principal Act, in Schedule II, - (1)for the entry at serial No. 58A, the following entry shall be substituted,namely:- 1 2 3 58A Machinery(including spare parts, accessories and components thereof) usedin manufacture of goods excluding domestic appliances (whetherfitted or not with electric motor) such as grinder, mixer,grinder-cum-mixer, juicer, blender, water purifier, flour mill,toaster,;oven, etc. Fourpaise in the rupee. (2)in the entry at serial No. 87, for. the word and figure "ScheduleI", the words and figures "Schedule I or Schedule III" shallbe substituted.