PVC BAGS - VAT RATE

[SUMEDH AYARE]

WHAT SHOULD BE THE RATE OF VAT ON BAGS MADE UP OF PVC. BECAUSE ENTRY NO.107(6) COVERS ONLY FEEDING BOTTLE AND NIPPLES. WHAT SHOULD BE THE RATE OF VAT ON BAGS.

AI Summary

VAT Rate on PVC Bags: Default to Residuary Rate or Seek Clarification from MVAT Commissioner. A query was raised regarding the applicable VAT rate on PVC bags, as existing entries cover only feeding bottles and nipples. The response suggested two options: if PVC bags cannot be classified as feeding bottle accessories and are not listed in the taxable VAT schedule under the MVAT Act, they would default to the peak rate under the residuary VAT schedule. Alternatively, the inquirer could seek clarification from the MVAT Department's Commissioner by submitting a formal application, with a response expected within 30 days.