GUJARAT VAT RATE APPLICABLE

[Devang Shah]

WE ARE MFG. OF LABEL IN GUJARAT BASE WE PURCHASE PAPER ROLL (ADHESIVE) (UNDER EXCISE TARIFF HEAD 48) AND POLYESTER ROLL (UNDER EXCISE TARIFF HEAD 3919) AND MFG. LABEL. IN GUJARAT VAT WE CHARGES LABEL SALES PAPER LABEL & POLYESTER LABEL 5% VAT RATE IN SALES INVOICE (UNDER EXCISE HEAD 48). MY QUERY IS PAPER LABEL & POLYESTER LABEL ARE DIFFERENCE RATE CHARGES 5% OR 12.5% WHICH SCHEDULE UNDER WE HAVE FIND WHICH RATE APPLICABLE.

AI Summary

Manufacturer Seeks Clarification on Correct VAT Rate for Polyester Labels: 5% or 15%? Classification Uncertain. A manufacturer in Gujarat inquired about the applicable VAT rate for paper and polyester labels. They purchase adhesive paper rolls and polyester rolls to manufacture labels and currently charge a 5% VAT on sales invoices. However, local authorities suggested a 15% VAT rate for polyester labels. A respondent advised checking if the materials fall under the category of Industrial Inputs, which would affect the tax rate. The manufacturer seeks clarification on whether to apply a 5% or 15% VAT rate for polyester labels, as they are uncertain about the correct classification under the excise tariff.