TaxTMI 
TaxTMI 
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,
MVAT on Cotton Fabric
04 Sep 2012 
1 Reply 
2938 Views Asked by
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. (AI Summary)
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. (AI Summary)