MVAT on Cotton Fabric

[deepak kalambate]

Dear Sir,

Pl let us know whether MVAT is applicable on 100% Cotton Shirting fabric falling under C.Ex. Tariff 52081130 52084230

Pl advise.

Thanks & Regards,

AI Summary

MVAT imposes 4% tax on 100% cotton shirting fabric under specific tariff codes as per Section 14 of CST Act. A query was raised regarding the applicability of Maharashtra Value Added Tax (MVAT) on 100% cotton shirting fabric under specific tariff codes. The response indicated that fabrics, including cotton shirting, are subject to a 4% tax as per section 14 of the Central Sales Tax Act, 1956. Additionally, certain textile varieties and articles may be taxed at 5%, as notified by the State Government in the Official Gazette.