VAT NEWS

Puri accused states of “making a killing” by charging ad-valorem rates, which result in high revenues with rising prices, and asked states, ruled by the Congress and other opposition parties, to reduce rates by half.

The CM of Tripura, an Indian state, has requested the Petroleum Ministry to do away with the VAT waiver currently provided to the ONGC Tripura Power Company (OTPC). The state government emphasized on the loss being borne, due to the waiver. OTPC, which runs the Palatana Power Project, is in profits, and the state government understands that the removal of waiver won’t cause any unwanted loss to the company.

A top official involved with GST implementation in India has revealed that the country might follow a combination of GST and VAT systems over fuels. The peak GST rate plus VAT will be equal to the present tax incidence computed by adding Central Government’s excise duty and state government’s VAT. The Central Government might lose some Rs 20,000 crore of input tax credit if fuels are brought under GST regime.