The panel on value added tax has decided that items which have at least 50 per cent industrial use will attract 4 per cent tax rate for that particular use.
Trade body Bharatiya Udyog Vyapar Mandal gave a call for a nationwide strike on Friday against the VAT system, implemented by 21 states from this month.
The centre on Tuesday sought to allay fears that VAT will be inflationary and expressed confidence that the new tax system will be introduced by all the states from April 1.
The nation-wide bandh by traders to oppose introduction of the value added tax VAT) system entered the second day on Tuesday even as the implementation of the new tax regime was deferred.
The state has not touched diesel prices, fearing losing revenue to neighbouring states
The GST Council on Saturday postponed a decision on cutting tax rate on life and health insurance premiums, officials said. The 55th meeting of the GST Council, chaired by Union Finance Minister Nirmala Sitharaman and comprising state counterparts, decided that some more technicalities needed to be ironed out and tasked the GoM for further deliberations.
Graphical representation of value added tax and how it works.
The crucial meeting of the empowered committee of state finance ministers on value-added tax began in New Delhi on Wednesday to resolve all pending issues to ensure smooth implementation of the new tax regime from June 1 this year.
\nThe traders had earlier decided to go on a strike from October 2, to protest the implementation of VAT on essential foodgrain.
About 410 petrol pumps in the national capital were to shut shop on Friday to protest against the hike in the VAT rate on diesel, which was driving vehicles to neighbouring Gurgaon for refueling.
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Observing that the prime reason for these losses was high fuel cost which constituted almost 40-50 per cent of an airline's total costs, Civil Aviation Minister Ajit Singh said the aviation turbine fuel (ATF) prices were high due to rising base price and "very high VAT imposed by state governments."
The Enforcement Directorate (ED) is expected to press money laundering charges against its two officers and some private individuals who were recently booked by the CBI in a bribery case linked to an accused arrested in the alleged Delhi liquor policy scam, official sources said Tuesday.
The meeting of the Empowered Committee of Finance Ministers of States and Union Territories began with some states demanding that they be allowed to charge service tax on certain items pending a decision on the implementation of VAT.
NITIE, Mumbai, invites students and working professionals for Samiksh, a panel discussion on VAT: Implications On India Inc.
The contentious issue of value added tax was resolved on Tuesday with the state finance ministers deciding to implement from June 1 the new tax system in place of the sales tax.
Empowered committee of state finance ministers on value-added tax has sought to allay fears of traders that the new tax system will lead to increase in prices, stating that the worldwide experience did not support this apprehension.
The GST Council, in its meeting on Saturday, is likely to decide on reducing tax rates on life and health insurance premiums, while hiking it on high-end wrist watches, shoes and apparels, besides considering a separate 35 per cent tax slab for sin goods. The 55th meeting of the GST Council, chaired by Union Finance Minister Nirmala Sitharaman and comprising state counterparts, is likely to discuss rate rejig in about 148 items, besides, it will also deliberate on bringing Aviation Turbine Fuel (ATF), a major component for airline industry's operation cost, in the Goods and Services Tax (GST) fold.
