AP to rationalise VAT rates on liquor types
Vijayawada: Andhra Pradesh Government has decided to rationalise VAT rates on various categories of liquor by passing by voice vote the AP Value Added Tax (Amendment) Bill, 2021 in the Assembly on Thursday.
Finance Minister Buggana Rajendranath also tabled the AP Goods and Services Tax (GST) (Amendment) Bill, 2021, which was also adopted.
Speaking on the occasion, the Finance Minister said under the AP Value Added Tax Act, 2005, liquor for human consumption is taxed presently at the rates ranging from 130 to 190 percent and added that Telangana has reduced the VAT rate to a flat 70 percent on all categories of liquor during 2016. He said in order to bring about parity in levy of VAT with the neighboring States, it has been decided to rationalise the rates of VAT on various categories of liquor for human consumption in the State and hence brought in AP Value Added Tax (Amendment) Bill, 2021 to reduce the VAT rates on alcoholic beverages.
Referring to the AP GST (Amendment) Bill, 2021, the Finance Minister said GST provides for levy and collection of taxes on intra-state supply of goods and services by the State Government and the amendments are being made for checking tax evasion or to reduce the compliance burden of the taxpayers. The Minister said the amendments to the AP GST Act, 2017, are to amend section 7 of the Act, to ensure levy of tax on activities or transactions involving supply of goods or services by any person, other than an individual, to its members or constituents or vice-versa, for cash, deferred payment or other valuable consideration.
The Minister said the bill intends to amend section 16 of the Act to provide that input tax credit on invoice or debit note may be availed only when the details of such invoice or debit note has been furnished by the supplier in the statement of outward supplies and such details have been communicated to the recipient of such invoice or debit note. He said another amendment is to amend Section 35 and Section 44 of the Act so as to remove the mandatory requirement of getting annual accounts audited and the reconciliation statement submitted by specified professional and to remove the mandatory requirement of furnishing a reconciliation statement duly audited by specified professional and to provide for filing of the annual return on self-certification basis.