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,

[YAGAY andSUN]

101 (a) (New enrty)	Fabrics and sugar as defined from time to time, in section 14 of the Central Sales Tax act, 1956	4%
101 (b)	Varieties textile and textile articles as may be notified from time to time by the State Government in the Official Gazette.	5%

 

 

AI Summary

MVAT applicability on cotton fabric clarified: CST-defined fabrics and state-notified textile articles attract different VAT treatment. The response distinguishes fabrics defined under the Central Sales Tax definition and state-notified textile articles as separate taxable categories; fabrics so defined are listed under one VAT entry with a lower prescribed rate, while varieties of textiles and textile articles notified by the State Government in the Official Gazette fall under a different VAT entry with a higher prescribed rate, making MVAT treatment contingent on which category the cotton shirting is classified into.