Rate of vat on fertilizer & ceramic pots

[Rudrayani Shedjale]

Hello

The rate of vat on fertilizer is 5.5% and on ceramic pots its 12.5% in Maharashtra.

Just seen a notification that tax rate has been enhanced to 6% and 13.5%. Since 17th September.

Please explain is it applicable to fertilizer and pots

[YAGAY andSUN]

Since, the changes made across the board by the MVAT Department, therefore, such changes shall be applicable on Fertilizer and Ceramic pots also. However earthen pots and organic manure shall be tax free/exempted from VAT.

Following link is just for your kind information.

http://www.mahavat.gov.in/Mahavat/MyFold/KNOWLEDGE%20CENTER/DDQ/KNOW_DDQ/KNOW_DDQ_03_14_12_2_45_20PM.pdf

[YAGAY andSUN]

Please go through the link and check whether the goods as specified by you in your query duly falls under this notification or not?

http://www.mahavat.gov.in/Mahavat/MyFold/DOWNLOADS/NOTIFICATIONS/KNOW_NOTIFI_MVAT/KNOW_NOTIFI_MVAT_09_16_16_6_24_4PM.pdf

[Rudrayani Shedjale]

Yes fertilizer falls under schedule c against serial number 34 where rate of tax was 5.5% and ceramic pots comes under schedule e where rate of tax is 12.5% which have been increased to 6 & 13.5% respectively.

Thank you for the information.

[Ganeshan Kalyani]

The tax rate change in with effect from 17.09.2016. Thanks.

[Ganeshan Kalyani]

Refer Notification No. VAT. 1516/CR 123/Taxation-1 16.09.2016

[Ganeshan Kalyani]

Schedule C tax rate was increased from 5% to 5.5% with effect from 01.04.2016. And now fro. 5.5% to 6% . This seems that Govt is changing this tax rate keeping in view of upcoming GST.

[Ganeshan Kalyani]

Also, the new system for uploading VAT/ CST return has been implemented with effect from 01.04.2016. In fact website has been developed keeping in mind the need of the same in GST.

AI Summary

VAT rate increase affects fertilizer and ceramic pots; exemptions apply for earthen pots and organic manure. A Maharashtra notification amended VAT rates so fertilizer (Schedule C) and ceramic pots (Schedule E) have increased VAT rates effective mid September; earthen pots and organic manure remain exempt. Taxpayers must check the notification and schedule classifications to confirm applicability, noting earlier intra year rate adjustments and recent implementation of a new VAT/CST return filing system in anticipation of GST.