LexThe Gujarat Value Added Tax Act, 2003.
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GOVERNMENT OF GUJARAT
LEGISLATIVE AND
PARLIAMENTARY
AFFAIRS DEPARTMENT
GUJARAT ACT NO. 1 OF 2005
THE GUJARAT VALUE ADDED TAX ACT, 2003.
[As modified upto 30th June, 2010]
PRINTED IN INDIA BY THE MANAGER, GOVERNMENT PRESS,
BHAVNAGAR, PUBLISHED BY THE DIRECTOR,
GOVERNMENT PRINTING, PUBLICATIONS AND STATIONERIES,
GUJARAT STATE, GANDHINAGAR.
[2007]
[Price; Rs Paisa ]
Gujarat Value Added Tax Act, 2003. [2005 : Guj.
GOVERNMENT OF GUJARAT
LEGISLATIVE AND PARLIAMENTARY
AFFAIRS DEPARTMENT
GUJARAT ACT NO. 1 OF 2005
THE GUJARAT VALUE ADDED TAX ACT, 2003.
[As modified upto 30
th June, 2010]
PRINTED IN INDIA BY THE MANAGER, GOVERNMENT PRESS,
BHAVNAGAR, PUBLISHED BY THE DIRECTOR,
GOVERNMENT PRINTING, PUBLICATIONS AND STATIONERIES,
GUJARAT STATE, GANDHINAGAR.
[2007]
[Price; Rs Paisa ]
H-678-(i)
Gujarat Value Added Tax Act, 2003. [2005 : Guj.
THE GUJARAT VALUE ADDED TAX ACT, 2003.
CONTENTS
PREAMBLE
Sections.
Page
No.
CHAPTER I
PRELIMINARY
1. Short title, extent and commencement. 1
2. Definitions. 1
CHAPTER I
INCIDENCE AND LEVY OF TAX
3. Incidence of tax. 10
4. Certain sales and purchases not liable to tax. 11
5. Exemptions. 11
5A. Zero rated sale. 12
6. Taxes payable by a dealer. 12
7. Levy of tax on turnover of sale and rates of tax. 12
7A. Power to assign HSN Code to goods. 13
8. Adjustments in tax. 13
9. Levy of purchase tax. 14
10. Rate of tax on packing materials. 16
11. Tax credit. 16
12. Tax credit for stock on 31st March, 2003. 21
13. Net amount of Value Added Tax. 22
14. Option for payment of lump sum tax in lieu of tax on
sales.
22
14A. Composition of tax on works contract. 24
14B. Composition of tax on agricultural produce. 24
14C. Composition of tax on turnover of right to use goods. 26
14D. Composition of tax on sales of eatables by hotels,
restaurants, caterers, etc.
26
15. Burden of proof. 26
Gujarat Value Added Tax Act, 2003. [2005 : Guj.
PREAMBLE
Sections.
Page
No.
CHAPTER III
COMMERCIAL TAX AUTHORITIES AND
TRIBUNAL
16. Commercial tax authorities and jurisdiction. 27
17. Power to transfer proceedings. 28
18. Disputes regarding jurisdiction of tax authority. 28
19. Tribunal. 28
20. Powers of Tribunal and Commissioner. 30
CHAPTER IV
REGISTRATION
21. Registration. 30
22. Voluntary registration. 31
23. Deemed registration. 32
24. Non-transferability of registration. 32
25. Continuation of certificate of registration of dissolved
firm.
32
26. Amendment of certificate of registration. 32
27. Cancellation of registration. 33
28. Security from certain class of dealers. 36
CHAPTER V
RETURNS, PAYMENT OF TAX, ASSESSMENT,
RECOVERY OF TAX AND REFUND
29. Returns. 38
30. Periodical payment of tax and interest on non-payment of
tax.
39
31. Collection of tax only by registered dealers. 39
32. Return scrutiny and provisional assessment. 40
33. Self-assessment. 41
34. Audit assessment. 41
34A. Assessment on basis of fair market price. 44
Gujarat Value Added Tax Act, 2003. [2005 : Guj.
PREAMBLE
Sections.
Page
No.
35. Turnover escaping assessment. 44
36. Refund of excess payment. 44
37. Provisional refund. 45
38. Interest on refund. 45
39. Power to withhold refund in certain cases. 46
40. Refund of tax for certain categories. 46
41. Remission of tax, penalty or interest. 46
42. Payment and recovery of tax and interest on delayed
payment.
47
43. Continuation of certain recovery proceedings. 48
44. Special mode of recovery. 48
45. Provisional attachment. 49
46. Special powers of tax authorities for recovery of tax as
arrears of land revenue.
49
47. Transfer to defraud revenue void. 50
48. Tax to be first charge on property. 50
CHAPTER VI
LIABILITY TO PAY TAX IN CERTAIN CASES
49. Applicability of the Act or earlier law to other persons
liable to pay tax.
50
50. Liability of commission agent and principal. 50
51. Liability in case of transfer of business. 51
52. Amalgamation of Companies. 51
53. Liability in case of company in liquidation. 51
54. Liability of partners of firm to pay tax. 52
55. Liability of guardians, trustees etc. 52
56. Liability of Court of Wards etc. 52
H-678-(ii)
Gujarat Value Added Tax Act, 2003. [2005 : Guj.
PREAMBLE
Sections.
Page
No.
57. Special provision regarding liability to pay tax in certain
cases.
52
58. Liability in other cases. 54
59. Service of notice in certain circumstances. 54
CHAPTER VI A
DEDUCTION AT SOURCRS
59A. Definitions. 54
59B. Deduction at sources in certain cases. 55
CHAPTER VII
ACCOUNTS AND RECORDS
60. Invoices. 57
61. Credit and debit notes. 58
62. Accounts. 58
62A. Automation. 59
63. Accounts to be audited in certain cases. 59
64. Preservation of records. 60
CHAPTER VIII
LIABILITY TO PRODUCE ACCOUNTS AND
SUPPLY OF INFORMATION
65. Dealer to declare the name of manager of business. 60
66. Dealer to declare details of bank accounts. 60
66A. Furnishing of specimen signature. 60
67. Production and inspection of accounts and documents
and search of premises.
61
68. Inspection of goods in transit, etc. 62
69. Transit pass for transit of goods by road through the
State.
64
70. Furnishing of information by owners of cold storage,
warehouses, godowns, etc.
64
70A. Furnishing of information by others. 65
Gujarat Value Added Tax Act, 2003. [2005 : Guj.
PREAMBLE
Sections.
Page
No.
71. Power to collect statistics. 66
72. Special powers for reconstitution of records in certain
circumstances.
66
CHAPTER IX
APPEAL, REVISION, REFERENCE AND
RECTIFICATION
73. Appeal. 67
74. Non-appealable orders. 68
75. Revision. 68
76. Court-fee on appeal and application for revision. 69
77. Applications of sections 4 and 12 of Limitation Act,
1963.
69
78. Appeal to High Court. 69
79. Rectification of mistakes. 70
80. Determination of disputed questions. 70
CHAPTER X
PROCEEDINGS
81. Appearance before any authority in proceedings. 71
82. Power of Commissioner and other authorities to take
evidence on oath, etc.
72
83. Change of an incumbent of an office. 73
84. Extension of period of limitation in certain cases. 73
CHAPTER XI
OFFENCES AND PENALTIES
85. Offences and penalties. 73
86. Offences by companies, etc. 75
87. Cognizance of offences. 76
88. Investigation of offence. 76
89. Compounding of offences. 76
CHAPTER XII
Gujarat Value Added Tax Act, 2003. [2005 : Guj.
PREAMBLE
Sections.
Page
No.
MISCELLANEOUS
90. Indemnity. 76
91. Public servants. 77
92. Disclosure of information by a public servant. 77
93. Assessment proceedings etc. not to be invalid on certain
grounds.
78
94. Bar of jurisdiction of Civil Courts. 78
95. Disclosure of information required under section 71. 78
96. Levy of fees. 79
97. Publication of information regarding dealers and other
persons in public interest.
79
98. Power to make rules. 79
99. Power to remove difficulties. 80
100. Repeal and savings. 80
SCHEDULE I 82
SCHEDULE II 85
SCHEDULE III 92
Gujarat Value Added Tax Act, 2003. [2005 : Guj.
GUJARAT ACT NO. 1 OF 2005*1.
[ THE GUJARAT VALUE ADDED TAX ACT, 2003 ]
[1ST April, 2005] (17th January, 2005)
Amended by Guj. 6 of 2006.
Amended by Guj. 25 of 2006.
Amended by Guj. 10 of 2007.
Amended by Guj. 9 of 2008.
Amended by Guj. 12 of 2009.
Amended by Guj. 4 of 2010.
AN ACT
to consolidate and amend the laws relating to the levy and collection of tax
on value added basis in respect of sale or
purchases of goods in the State of Gujarat.
It is hereby enacted in the Fifty-fourth Year of the Republic of India as
follows:-
CHAPTER I
PRELIMINARY
1. (1) This Act may be called the Gujarat Value Added Tax Act,
2003.
(2) It extends to the whole of the State of Gujarat.
(3) This section shall come into force at once and the remaining
provisions of this Act shall come into force on such date as the State
Government may, by notification in the Official Gazette,2 [appoint.]
2. In this Act, unless the context otherwise requires,-
3[(1A) "additional tax" means the additional tax leviable and payable
under sub-section (1A) of section 7 or sub-section (6) of section 9;]
(1) “agriculture” with all its grammatical variations and cognate
expressions includes floriculture, horticulture, the raising of crops,
grass or garden produce, and grazing; but does not include dairy
farming, poultry farming, stock breeding or the mere cutting of wood
or grass or gathering of fruits;
(2) “agriculturist” means a person who cultivates land personally for the
purpose of agriculture;
1. For Statement of Objects and Reasons, See Gujarat Government Gazette, Extraordinary,
Part V, dated the 17th March, 2003, Pages 77 to 81.
* This Act was assented to by the President on the 17th January, 2005.
2. The word "appoint" was substituted for the word, "appoint, and different dates may be
appointed for different Provisions" by Guj. 6 of 2006, s.2.
3. Clause (1A) was inserted, by Guj.9 of 2009, s.2(1).
Short title,
extent and
commencement
.
Definitions.
H-678-1
Gujarat Value Added Tax Act, 2003. [2005 : Guj.
(3) 4[“appointed day” means the date on which the remaining
provisions of this Act shall come into force under sub-section (3)
of section 1];
(4) “business” includes –
(i) any trade, commerce or manufacture or any adventure or
concern in the nature of trade, commerce or manufacture,
whether or not such trade, commerce, manufacture,
adventure or concern is carried on with a motive to make profit
or gain and whether or not any profit or gain accrues from
such trade, commerce, manufacture, adventure or concern;
and
(ii) any transaction of buying, selling or supplying plant,
machinery, raw materials, processing m aterials, packing
materials, empties, consumable stores, waste products, or
such other goods, or waste or scrap of any of them which is
ancillary or incidental to or resulting from such trade,
commerce, manufacture, adventure or concern;
(5)
2[“capital goods” means plant and machinery (other than second
hand plant and machinery) meant for use in manufacture of taxable
goods and accounted as capital assets in the books of accounts];
(6) “Central Act” means the Central Sales Tax Act, 1956;
(7) “commission agent” means a dealer who bonafidly buys or sells, for
an agreed commission, any goods on behalf of principals;
(8) “Commissioner ” means the person appointed to be the
Commissioner of Commercial Tax for the purposes of this Act;
(9) (a) “to cultivate” means to carry on any agricultural operation;
and
(b) “to cultivate personally” means to cultivate on one’s own
account -
(i) by one’s own labour, or
(ii) by the labour of one’s own family, or
(iii) by servants on wages payable in cash or kind (but not
in crop share), or by hired labour under one’s personal
supervision or the personal supervision of any
member of one’s family.
Explanation I.-- A widow or a minor or a person who is subject to any physical
or mental disability, shall be deemed to cultivate land personally if it is
cultivated by her or his servants or by hired labour.
Explanation II.-- In the case of a Hindu Undivided Family, lan d shall be
deemed to be cultivated personally if it is cultivated by any member of such
family;
4. Clause (3) was substituted for original,by Guj. 6 of 2006, s.3(1).
2. Clause (5) was substituted for original ibid., s.3(1).
LXXIV OF
1956.
Gujarat Value Added Tax Act, 2003. [2005 : Guj.
(10) “dealer” means any person who, for the purpose of or consequential
to his engagement in or, in connection with or incidental to or in the
course of his business buys, sells, manufactures, makes supplies or
distributes goods, directly or otherwise, whether for cash or deferred
payment, or for commission, remuneration or otherwise and
includes,-
(a) the Central Government or a State Government or any local
authority such as municipality or municipal corporation or
panchayat, a statutory authority, a company, a partnership
firm, a Hindu Undivided Family or any society, club,
association or body, incorporated or not, of persons which
carries on business;
(b) a casual dealer, that is to say, a person who whether as
principal, agent or in any other capacity, undertakes
occasional transaction of a business nature in any exhibition-
cum-sale or auction or otherwise in the State, whether for
cash, deferred payment, commission, remuneration or other
valuable consideration;
(c) an auctioneer, who sells or auctions goods belonging to any
principal whether disclosed or not and whether the offer of the
intending purchaser is accepted by him or by the principal or
a nominee of principal;
(d) a factor, broker, commission agent, del credere agent or an
auctioneer or any mercantile agent, by whatever name called,
who carries on business on behalf of any principal whether
disclosed or not;
(e) any person who transfers, otherwise than in pursuance of a
contract, property in any goods for cash, deferred payment or
other valuable consideration;
(f) any person who transfers property in goods (whether as
goods or in some other form) involved in the execution of a
works contract;
(g) any person who delivers goods on hire purchase or any
system of payment by installments;
(h) any person who transfers the right to use any goods for any
purpose (whether or not for a specified period) for cash,
deferred payment or other valuable consideration; and
(i) any person who supplies, by way of or as part of any service
or in any other manner whatsoever, goods being food or any
other article for human consumption or any drink (whether or
not intoxicating) where such supply or service is for cash,
deferred payment or other valuable consideration.
Explanation.-- (i) A society (including a co-operative society), club or firm
or an association, which, whether or not in the course of business,
buys, sells, supplies or distributes goods, directly or otherwise, from
Gujarat Value Added Tax Act, 2003. [2005 : Guj.
or to its members or other persons for cash, deferred payment,
commission, remuneration or other valuable consideration, shall be
deemed to be dealer for the purposes of this Act.
(ii) The Central Government or a State Government or a local
authority or railway administration or port trusts or a statutory body,
which, whether or not in the course of business, buys, sells,
supplies or distributes goods, directly or otherwise, for cash,
deferred payment, commission, remuneration or other valuable
consideration, shall be deemed to be dealer for the purposes of this
Act.
(iii) Any person or body, which disposes of any goods including
unclaimed, confiscated, unserviceable, scrap, surplus, old,
obsolete, discarded, waste or surplus product or goods, whether by
auction or otherwise, directly or through an agent, for cash deferred
payment, commission, remuneration or other valuable
consideration, shall be deemed to be dealer for the purposes of this
Act.
Exceptions.-- The following shall not be deemed to be a dealer
within the meaning of this clause, namely:-
(i) an agriculturist who sells exclusively agricultural produce grown on
land cultivated by him personally;
(ii) an individual who sells exclusively any fish or any sea-food caught
by him personally or by any member of his family on account of or on
behalf of such individual; and
(iii) a charitable, religious or educational institution, carrying on the
activity of manufacturing, buying, selling or supplying goods, in
performance of its functions, for achieving its avowed objects, which
are not in the nature of business.
(11) “declared goods” means goods declared to be of special importance
in inter-State trade or commerce under section 14 of the Central Act;
(12)
5[“earlier law” means any of the following laws, that is to say:—
(i) the Bombay Sales of Motor Spirit Taxation Act, 1958,
(ii) the Gujarat Sales Tax Act, 1969, or
(iii) the Gujarat Purchase Tax on Sugarcane Act, 1989,
as amended from time to time and includes enactments which have
validated anything done or omitted to be done under these laws;]
(13) “goods” means all kinds of movable property (other than newspapers,
actionable claims, electricity, stocks and shares and securities) and
includes live stocks, all materials, articles and commodities and every
kind of property (whether as goods or in some other form) involved in
the execution of works contract, all intangible commodities and
5. Clause (12) was substituted, for original by Guj. 6 of 2006, s.3(3).
LXXIV of
1956.
Bom.
LXVI of
1958.
Guj. 1
of
1970
Guj. 11
of 1989.
Gujarat Value Added Tax Act, 2003. [2005 : Guj.
growing crops, grass, standing timber or things attached to or forming
part of the land, which are agreed to be severed before sale or under
the contract of sale;
6[(13A) “HSN code “ means harmonized system of nomenclature code
assigned to the goods specified in the Schedules;]
(14) “manufacture” with its grammatical variations and cognate
expressions means includes producing, making, extracting,
collecting, altering, ornamenting, finishing, assembling or otherwise
processing, treating or adapting any goods; but does not include such
manufactures or manufacturing processes as may be prescribed;
(15) “person” includes an individual, a joint family or Hindu Undivided
Family, a company, a firm, an association of persons or body of
individuals, whether incorporated or not, a society, club or other
institution, a local authority, the Central Government or a State
Government and every artificial juridical person not falling within any
of the preceding descriptions;
(16) “place of business” means any place where a dealer carries on
business and includes,--
(a) a warehouse, godown or other place where a dealer stores or
processes his goods;
(b) any place where a dealer produces or manufactures goods;
(c) any place where a dealer keeps his books of accounts;
(d) any vehicle or vessel or any other carrier wherein the goods
are stored or used for transporting the goods;
(e) any place of business of an agent by whatever name called
through whom a dealer carries on business;
(17) “prescribed ” means prescribed by rules;
(18) “purchase price“ means the amount of valuable consideration paid or
payable by a person for any purchase made including the amount of
duties levied or leviable under the Central Excise Tariff Act, 1985 or
the Customs Act, 1962 and any sum charged for anything done by
the seller in respect of the goods at the time of or before delivery
thereof, other than the cost of insurance for transit or of installation,
when such cost is separately charged and includes, -
(a) in relation to –
(i) the transfer, otherwise than in pursuance of a contract
of property in any goods,
(ii) the supply of goods by any unincorporated
association or body of persons to a member thereof,
(iii) the supply by way of or as part of any service or in any
other manner whatsoever, of goods, being food or any other
6. Clause (13A) was inserted, by Guj.6 of 2006, s.3(4)
5 of 1986.
52 of 1962.
H-678-2
Gujarat Value Added Tax Act, 2003. [2005 : Guj.
article for human consumption or any drink (whether or not
intoxicating),
the amount of cash, deferred payment or other valuable consideration
paid or payable therefor,
(b) in relation to the transfer of property in goods (whether as
goods or in some other form) involved in the execution of a works
contract, such amount as is arrived at by deducting from the amount
of valuable consideration paid or payable by a person for the
execution of such works contract, the amount representing labour
charges for such execution,
(c) in relation to the delivery of goods on hire purchase or any
system of payment by installments, the amount of valuable
consideration payable by a person for such delivery;
(19) “raw materials” means goods used as ingredient in the
manufacture of other goods and includes processing materials,
consumable stores and material used in the packing of the goods so
manufactured but does not include fuels for the purpose of generation
of electricity;
(20) “registered dealer“ means a dealer registered under the provisions of
this Act, who holds a certificate of registration granted or deemed to
have been granted under this Act;
(21) “resale” means a sale of purchased goods,-
(i) in the same form in which they were purchased; or
(ii) without using them in the manufacture of any goods or without
doing anything to them which amounts to or results in, a
manufacture;
and the word “resell” shall be construed accordingly;
(22) “rules” means the rules made under this Act;
(23) “sale” means a sale of goods made within the State for cash or
deferred payment or other valuable consideration and includes,-
(a) transfer, otherwise than in pursuance of a contract, of
property in goods for cash, deferred payment or other
valuable consideration,
(b) transfer of property in goods (whether as goods or in some
other form) involved in execution of a works contract,
(c) delivery of goods on hire purchase or any system of payment
by installments,
(d) transfer of the right to use any goods for any purpose
(whether or not for a specified period) for cash, deferred
payment or other valuable consideration,
Gujarat Value Added Tax Act, 2003. [2005 : Guj.
(e) supply of goods by any unincorporated association or body of
persons to a member thereof for cash, deferred payment or
other valuable consideration,
(f) supply of goods by a society or club or an association to its
members on payment of a price or of fees or subscription or
any consideration,
(g) supply of goods by way of or as part of any service or in any
other manner whatsoever, or
(h) supply of goods being food or any other article for human
consumption or any drink (whether or not intoxicating) where
such supply or service is for cash, deferred payment or other
valuable consideration,
(i) supply by way of barter of goods,
(j) disposal of goods by a person in the manner prescribed in
Explanation (iii) to clause 10
but does not include a mortgage, hypothecation, charge or pledge;
and the words “sell”, “buy” and “purchase” with all their grammatical
variations and cognate expressions shall be construed accordingly.
Explanation.- (i) - For the purposes of this clause, “sale within the
State” includes a sale determined to be inside the State in
accordance with the principles formulated in sub- section (2) of
section 4 of the Central Act;
(ii) for the purpose of sub- clause (b) of the expression “works
contract” means a contract for execution of works and includes such
works contract as the State Government may, by notification in the
Official Gazette, specify;
(iii) every transfer of property in goods by the Central Government,
any State Government, a statutory body or a local authority for cash,
deferred payment or other valuable consideration, whether or not in
the course of business, shall be deemed to be a sale for the purposes
of this Act;
(24) “sale price” means the amount of valuable consideration paid or
payable to a dealer or received or receivable by a dealer for any sale
of goods made including the amount of duties levied or leviable under
the Central Excise Tariff Act, 1985 or the Customs Act, 1962 and any
sum charged for anything done by the dealer in respect of the goods
at the time of or before delivery thereof, and includes, -
(a) in relation to –
(i) the transfer, otherwise than in pursuance of a contract, of
property in any goods,
(ii) the transfer of the right to use any goods for any purpose,
whether or not for a specified period,
(iii) the supply of goods by any unincorporated association or
body of persons to a member thereof,
5 of 1986.
52 of 1962
Gujarat Value Added Tax Act, 2003. [2005 : Guj.
(iv) the supply by way of or as part of any service or in any other
manner whatsoever, of goods, being food or any other article
for human consumption or any drink (whether or not
intoxicating),
the amount of cash, deferred payment or other valuable consideration
paid or payable therefor;
(b) in relation to the transfer of property in goods (whether as
goods or in some other form) involved in the execution of a
works contract, such amount as is arrived at by deducting
from the amount of valuable consideration paid or payable to
a person for the execution of such works contract, the amount
representing labour charges for such execution;
(c) in relation to the delivery of goods on hire purchase or any
system of payment by installments, the amount of valuable
consideration payable to a person for such delivery;
(25) “Schedule” means a Schedule appended to this Act;
(26) “the State” means the State of Gujarat;
(27) “tax” means a tax leviable and payable under this Act on sales or
purchase of goods and includes lumpsum tax leviable or payable
under
7[section 14, 14A, 8[14B, 14C] or 14D]
(28) “tax period” means a calendar month or a quarter as may be
prescribed by the State Government;
(29) “taxable goods” means goods other than those on the sales or
purchase of which no tax is payable under section 5;
(30) “taxable turnover” means the turnover of all sales or purchases of a
dealer during the prescribed period in any year, which remains after
deducting therefrom,-
(a) the turnover of sales not subject to tax under this Act;
(b) the turnover of goods declared exempt under sub-section (1)
of section 5 or under a notification under sub -section (2) of
section 5, and
(c) in case of turnover of sales in relation to works contract, the
charges towards labour, service and other like charges, and
subject to such conditions as may be prescribed:
Provided that in the cases where the amount of charges
towards labour, service and other like charges in such contract are
not ascertainable from the terms and conditions of the contract, the
amount of such charges shall be calculated in such manner as may
be prescribed;
(31) “Tribunal” means the tribunal constituted under section 19;
7. These words, figures and letters were substituted, for the words and figures, "Section
14" by Guj. 25 of 2006, Part 1, s.2.
8. These figures, letters and words were substituted, for the figures, letters and word
"14B or 14C" ibid., Part II, s.12.
Gujarat Value Added Tax Act, 2003. [2005 : Guj.
(32) “turnover of purchases” means the aggregate of the amounts of
purchase price paid or payable by a dealer in respect of any purchase
of goods made by him during a given period after deducting the
amount of purchase price, if any, refunded to the dealer by the seller
in respect of any goods purchased from the seller and returned to him
within the prescribed period;
(33) “turnover of sales” means the aggregate of the amount of sale price
received or receivable by a dealer in respect of any sale of goods
made during a given period after deducting the amount of sale price,
if any, refunded by the dealer to a purchaser, in respect of any goods
purchased and returned by the pur chaser within the prescribed
period;
(34) “total turnover” means aggregate of the following transactions
effected by a dealer,
(a) turnover of sales or purchases of goods within the State whether such
sales or purchases of goods are taxable or exempt under this Act;
(b) turnover of sales of goods in the course of inter -State trade or
commerce;
(c) turnover of sales of goods in the course of export of goods out of the
territory of India;
(d) turnover of sales by a dealer on his own account and also on behalf
of his principal;
(35) “value of goods” means the value as ascertained from the purchase
invoices or bills and includes insurance charges, excise duties,
countervailing duties, value added tax, sales tax, transport charges,
freight charges and all other charges incidental to the transaction of
the goods:
Provided that where the purchase invoices or bills are not
produced or when the goods are acquired or obtained otherwise than
by way of purchase, the value of goods shall be the value at which
the goods of like kind or quality are sold or are capable of being sold
in open market;
(36)
9[“year” means a financial year;].
2["(37) "Zero rated sale" means a sale of goods by a registered dealer to
another registered dealer on which the rate of tax leviable shall be zero but
tax credit on the purchase related to that sale is admissible.]
CHAPTER II
INCIDENCE AND LEVY OF TAX
3. (1) Subject to the provisions of this Act, every dealer,-
(i) whose total turnover during the year immediately preceding the
appointed day exceeded rupees five lakhs and whose taxable
turnover exceeded rupees ten thousand in a year (the aforesaid
amounts of total turnover and taxable turnover are hereinafter
referred to as “thresholds of turnover”), or
(ii) who was registered under the earlier law or under the Central Act
as on the appointed day, or
9. Clause (36) was substituted, for original by Guj. 6 of 2006, s.3(5).
2. Clause (37) was inserted, by Guj. 9 of 2008, s.2(2).
Incidenc
e
of tax.
H-678-3
Gujarat Value Added Tax Act, 2003. [2005 : Guj.
(iii) whose total turnover and taxable turnover in any year first exceed the
thresholds of turnover, or
(iv) who is registered or liable to be registered as a dealer under this Act
or under the Central Act at any time after the appointed day shall be
liable to pay tax in accordance with the provisions of this Act.
(2) Notwithstanding anything contained in this section, a casual dealer
or an auctioneer shall be liable to be registered if his taxable turnover of
sales exceeds ten thousand rupees and he shall be liable to pay tax in
accordance with the provisions of this Act.
(3) The dealer shall be liable to pay tax,--
(a) in case of clauses (i) and (ii) of sub-section (1), with effect from the
appointed day;
(b) in case of clause (iii) of sub-section (1), with immediate effect when
his turnover calculated from the commencement of the year first
exceeds the thresholds of turnover;
(c) in case of clause (iv) of sub-section (1), with immediate effect when
he becomes so liable or the date of registration under this Act,
whichever is earlier:
Provided that the dealer shall not be liable to pay tax in respect of
thresholds of turnover as takes place during the period prior to the relevant
date of effect under this sub-section.
(4) Every dealer who has become liable to pay tax under this Act shall
continue to be so liable until the expiry of one year during which his total
turnover and taxable turnover have remained below the thresholds of
turnover.
10[ * * * *] :
Provided that any dealer whose liability to pay tax under this Act
ceases or his total turnover and taxable turnover during the year remains
below the thresholds of turnover, may apply for the cancellation o f his
certificate of registration; and on such cancellation, his liability to pay tax shall
cease and such dealer shall remain liable to pay tax till his certificate of
registration is cancelled.
(5) Every dealer whose liability to pay tax under this Act has ceased
under sub-section (4) or whose certificate of registration has been cancelled,
shall, if his total turnover and taxable turnover calculated from the
commencement of any year (including the year in which the registration has
been cancelled) again exceed the thresholds of turnover, on any day within
such year, be liable to pay tax with effect from the date immediately following
the day on which his such turnover again exceed thresholds of turnover of
sales effected by him after that date.
(6) Where by an order passed under this Act, it is found that any person
registered as a dealer ought not to have been so registered, then,
notwithstanding anything contained in this Act, such person shall be liable to
10. This Portion of the Words "and such further period after the date of such expiry as
may be prescribed; and on the expiary of such further period his liability to pay tax
shall cease", was deleted, by Guj. 6 of 2006, s.4.
Gujarat Value Added Tax Act, 2003. [2005 : Guj.
pay tax for the period commencing with the date of his registration and ending
with the date of such order, as if he were a dealer.
4. Nothing contained in this Act or the rules made thereunder shall be
deemed to impose or authorise the imposition of tax on any sale or purchase
of any goods where such sale or purchase takes place-
(a) in the course of inter-State trade or commerce; or
(b) outside the State; or
(c) in the course of the import of goods into or export of goods
out of the territory of India,
and the provisions of this Act and the rules thereunder shall be
construed accordingly.
Explanation.- Sections 3, 4 and 5 of the Central Act shall apply for
determining whether or not a particular sale or purchase has taken place in
the manner indicated in clauses (a), (b) or (c).
5. 11[(1) The sales and purchases of the goods specified in Schedule
I shall be exempt from tax subject to the conditions and exceptions set out
therein against each of them in column 3 of that Schedule.
(1A) The State Government may, by notification in the Official
Gazette, add to, or enlarge, any entry in Schedule I, or relax or omit
any conditions or exceptions specified therein, and thereupon the said
Schedule shall be deemed to be amended accordingly.
(2) (a) Subject to such conditions as it may impose, the State
Government may, if it considers necessary so to do in the public
interest, by notification in the Official Gazette, exempt any specified
class of sales or purchases or sales or purchases of goods by any
specified dealer or specified class of dealers from payment of the
whole or any part of the tax payable under the provisions of this Act.
(b) Where the State Government considers it necessary so to do in
the public interest to continue tax exemption granted to the sales or
purchases of goods by industrial units under sub-section (2) of section 49
of the Gujarat Sales Tax Act, 1969, it may, by notification in the Official
Gazette, continue such exemption with such modification, subject to such
conditions and for such period, as may be prescribed."];
(3) Every notification issued 12[under sub-section (1A) and sub-
section (2)] shall be laid for not less than thirty days before the State
Legislature as soon as possible after it is issued and shall be subject
to rescission by the State Legislature or to such modifications as the
State Legislature may make, during the session in which it is so laid or
session immediately following. Any rescission or modification so made
by the State Legislature shall be published in the Official Gazette, and
shall thereupon take effect.
11. Sub-sections (1) and (2) were substituted, for original sub-sections (1) and (2) by
Guj. 6 of 2006, s.5(1)
12. These words, brackets, figures and letter were substituted, For the words, brackets
and figure 'under sub-section (2)" by Guj. 6 of 2006., s.5(2)
Certain sales
and purchases
not liable to
tax.
Exemptions.
Guj. 1 of
1970.
Gujarat Value Added Tax Act, 2003. [2005 : Guj.
13[5A. The following sale shall be zero rated sale for the purpose of this
Act and tax credit on the purchase related to such sale shall be allowed
subject to such conditions as may be prescribed :-
(1) Sale of goods to the Developer or Co-developer of Special
Economic Zone as defined in the Gujarat Special Economic Zone
Act, 2004; or
(2) Sale of goods to a unit carrying on its business in the processing
area or in the demarcated area of Special Economic Zone and
approved as such by the Approval Committee as defined in the
Gujarat Special Economic Zone Act, 2004:
Provided that the sale of goods specified in Schedule III shall
not be zero rated sale:
Provided further that the sale of certain goods sale of goods
by any dealer or class of dealers as may be specified by the State
Government by notification in the Official Gazette, shall not be zero
rated sale.
6. Subject to the other provisions of this Act, every dealer, who is liable
to pay tax under this Act, shall pay the tax leviable in accordance with the
provisions of this Act.
7. (1) Subject to the provisions of this Act, there shall be levied a tax on the
turnover of sales of goods specified in 14[Schedule II or Schedule III] at the
rate set out against each of them 15[in the said Schedule II or, as the case
may be, Schedule III.]
16[(1A) Subject to the provisions of this Act, there shall be further levied
an additional tax on the turnover of sales of goods liable to be taxed under
sub-section (1), at the rate of-
(i) two and half paise in the rupee on the goods specified in the entries
at serial numbers 25, 46B, 48A, 49A, 49B,
17[51A, 76A and 87] in
Schedule II, and
(ii) one paisa in the rupee on the goods specified in the entries in
Schedule II other than the entries mentioned in clause (i) above:
Provided that the additional tax shall not be levied on the sale of,-
(a) goods declared to be of special importance in section 14 of the
Central Sales Tax Act, 1956;
(b) goods specified in entry at serial number 13 in Schedule II; and
(c) such goods as the State Government may, by notification in the
Official Gazette, specify.]
18[(2) The State Government may, by notification in the Official Gazette,
reduce any rate of tax specified in Schedule II or Schedule III in respect
of any entry ( or part thereof ) in the said Schedule II or III and may, by
like notification, omit or amend any entry (or part thereof) in the said
Schedule II or III but not so as to enhance the rate of tax in any case and
13. Section 5A was inserted, by Guj. 9 of 2008, s.3.
14. These words and figures were substituted for the word and figures "Schedule -II" by
Guj. 6 of 2006, s.6(1)(a),
15. These words and figures were substituted for the words "in the said Schedule II"
ibid., s.6(1)(b)
16 Sub-Section (1A) was inserted by Guj.9 of 2008, s.4.
17. These figures, letters and word were substituted for the figures, letter and word “51A
and 87” by Guj. 4 of 2010, s.2.
18. Sub-Section (2) was substituted for original by Guj. 6 of 2006., s.6(2).
Zero
rated
sale.
Guj. 11 of 2004.
Guj. 11 of 2004.
Taxes payable
by a dealer.
Levy of tax
on turnover
of sales and
rates of tax.
Gujarat Value Added Tax Act, 2003. [2005 : Guj.
thereupon the Schedule I, II or III shall be deemed to have been
amended accordingly].
(3) Every notification issued under sub-section (2) shall be laid for not
less than thirty days before the State Legislature as soon as possible after
it is issued and shall be subject to rescission by the State Legislature or to
such modifications as the State Legislature may make, during the session
in which it is so laid or session immediately following. Any rescission or
modification so made by the State Legislature shall be published in the
Official Gazette, and shall thereupon take effect.
19[7A. For the purpose of proper identification of the goods, the
State Government may by rules, assign the HSN code to each of
the goods specified in the Schedules and different codes may be
assigned to different goods covered under the same entry in the
Schedules.]
8. (1) The provisions of sub-section (2) shall apply where, in relation to
the sales of taxable goods by any registered dealer-
(a) that sale has been cancelled; or
(b) the consideration previously agreed upon for that sale has
been altered by agreement with the recipient, whether due
to the offer of a discount or for any other reason; or
(c) the goods or part of the goods sold have been returned to
the seller,
and as a result of the occurrence of any one or more of the above-
mentioned events of such sales, the seller has-
(i) provided a tax invoice in relation to that sale and the amount
shown therein as tax charged on that sale is incorrect in relation to
the amount properly chargeable on that sale; or
(ii) furnished a return in relation to the period in respect of which
tax on that sale is attributable, and has accounted for an incorrect
amount of tax on that sale in relation to the amount properly
chargeable on that sale.
(2) Where a seller has accounted for either in the tax invoice or
in the return an incorrect amount of tax as contemplated in sub-section (1),
such seller shall make an adjustment in calculating the tax payable by him in
the return for the tax period during which it has become apparent that the tax
is incorrect. Such adjustment shall be made in the following manner, namely:-
(a) if the amount of tax chargeable in relation to that sale exceeds the
amount of tax actually accounted for by the seller, the amount of that
excess shall be deemed to be tax charged by such seller in relation
to a taxable sale attributable to the tax period in which the adjustment
is to be made, and shall not be attributable to any prior tax period; or
(b) the amount of tax actually accounted for exceeds the amount of tax
properly chargeable in relation to that sale, such seller shall reduce
19. Section 7A was inserted, ibid., s.7.
Adjustments
in tax.
Power to
assign HSN
code to
goods.
H-678-4
Gujarat Value Added Tax Act, 2003. [2005 : Guj.
the amount of tax attributable to the said tax period in terms of section
7 by that excess amount of tax:
Provided that the reduction in the amount of tax under clause
(b) shall not be made-
(a) where the excess tax has been borne by the purchaser of
goods, or
20[(b) If the relevant event as described in sub -section (1) has
occurred subsequent to such period as may be prescribed, from the
date of such sales made by the dealer.]
9. (1) Where a dealer who is liable to pay tax under this Act purchases
any taxable goods from a person who is not a registered dealer, then there
shall be levied on such dealer a purchase tax on the turnover of such
purchases at the rate set out against each of such goods in
21[Schedule II or
Schedule III] of this Act.
(2) Where a registered dealer purchases sugarcane from a
person who is not a registered dealer, for the purpose of use thereof in the
manufacture of sugar or khandsari, there shall be levied a purchase tax on
the purchase of such sugarcane at the rate set out therefor in Schedule II of
this Act.
(3) Where any person or dealer has purchased any taxable
goods under a certificate or declaration given by him under any provision of
this Act or earlier law, rule or notification, and the conditions, recitals or
undertakings of such certificate or declaration are not complied with, then
such person or dealer shall be liable to pay purchase tax on the turnover of
such purchases at the rate set out against each of such goods 22[in Schedule
II or Schedule III or at the applicable rate of tax under the earlier law, as the
case may be.]
23[(4) Where a dealer or a Commission Agent who is liable to pay
tax under this Act purchases taxable goods f rom a Commission Agent to
whom permission to pay lump-sum tax is granted under section 14B and the
goods so purchased by him are not resold within the State, then such dealer
or the Commission Agent shall be liable to pay purchase tax on the turnover
of such purchases at the rate set out against each of such goods in Schedule
II.]
24[(5) Where a dealer liable to pay tax under this Act purchases
taxable goods sale of which is zeExcerpt shown. Open the full act in Lexace.