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.

[YAGAY and SUN]

Please check whether these C.E. Tariff falls under the category of Industrial Inputs or not. If yes, then tax would be 4% + 1% otherwise,it would be 12.50% +1.5%.

[Devang Shah]

Thanks for Reply

Sir, we are not find under tariff head 39199090 call (Self Adhesive film) it is industrial inputs or not.

here we clear that we are mfg. of all kind of Labels (Paper or Paper kind of label) we purchase input like Polyester Roll call Self Adhesive Film (which is mention our Purchase invoice) under tariff head 39199090. than after we made cutting the Roll and made labels (Call our Polyester Label) which we sales under Label Tariff Head 48219010 we charges our sales invoice 5% local Gujarat Vat. now our local Gujarat state office said it not 5% vat applicable you have charges 15% local sales it is a Polyester label ? we are not clear which rate charge 5% or 15% vat rate ?

Devang Shah

9904779686

AI Summary

VAT classification for self-adhesive polyester inputs determines applicable sales tax rate on finished label products under state law.
Whether polyester self adhesive film purchased by a label manufacturer qualifies as an industrial input determines whether reduced VAT treatment applies to the finished labels; if the film is not an industrial input, the higher VAT rate applicable to finished polyester labels will apply. The dispute arises from differing interpretations of excise/tariff descriptors and the state VAT schedule linking input classification to the rate on finished goods.