VAT to roll in MP from April 1

The Madhya Pradesh Assembly today passed the Bill to implement VAT (value added tax) with effect from April 1. The state also declared the rates for various categories of commodities. Grains, pulses, gur, sugar and 53 other commodities have been kept VAT-free keeping the needs of common man in mind.

According to sources in the commercial tax department, 53 commodities which are VAT free, include 54 kinds of agri machines and allied instruments, supporting instruments for handicapped persons, poultry and cattle fodder, betel leaves, books, weekly magazine and newspapers, maps, charts, global almanacs and diaries, weavers' spinning wheels (charkha), handloom, amberloom charkha, windloom, charcoal, grains, pulses, condom, contraceptives, medicines & devices, cotton & silk yarn, curd and its products butter, milk and manually manufactured clay pots among others. (kumbhar), electricity(generated by any kind of energy source), fishing net with its thread, fresh and packed milk, fresh fruits and vegetables, flowers, garlic, bangles (glass, lac or metal), blood and allied preserving instruments, musical instruments prepared manually, various kinds of cosmetics used in beauty parlours, German silver or aluminium ornaments, meat, fish, eggs, chicken, national flag, organic, compost or bio-manure, all types of stamp papers, worms required for Kosa silk and all kinds of silk yarn, slate, pencil, chalk sticks, coconut (green), breads, salt, unpacked water, vegetable grass or flower seeds (except maithi, dhania and oil seeds), papad, bamboo or khajur-made hand fans, mats or vessel made of bamboo, sweeping brush, rice-poha and husk, murmura, laayee, handycrafts, flour, maida, suzi, cloth, sugar, gur, sweetening particles (khandsari), tobacco, janeu and kites.

Ornaments made of Gold and silver, golden or silver coins, diamonds, gems & platinum made ornaments will be levied by 1 per cent. But, 28.75 per cent tax will be levied on petrol, diesel and ATF, 46 per cent on raw opium, 25.30 per cent on tendu leaves and 12.5 per cent on natural gas.

110 commodities are listed in the category on which VAT will be levied at 4 per cent. These include all agricultural instruments propelled by power (electricity, petrol, diesel, kerosene oil or gas), all kinds of vessels, nuts, ornaments made of rolled-gold, all kinds of bearings, baskets made of iron, aluminium or plastic, casting material, pumping sets and its components, tea, coffee or plastic cups or tumblers, all kinds of edible oils, de-gummed cakes, coal-ash taken out of electricity generating sets, all kinds of grocery, heeng, honey, hosiery goods, scented sticks, cable wire, computer, cellular phones, phone instruments and components, catechu, kerosene, mawa, cheese, all kinds of medicines, ghee, surgical instruments, thick cotton belt, nut bolts, G I wire, C I pipe, rail coach, bags, readymade garments, match box, sand, milk powder, sports goods, transformer, umbrella, vegetable oil, pen, colour box, drawing box, limestone, clinker, plastic granules, stainless steel, seat, wool, all kinds of jelly, jam & pickles, murabbas, fruit juice, packed water, processed meat and fish.

Rest of the commodities fall in the category with VAT rate of 12.5 per cent.