Entry tax in Gujarat is charged on the goods and commodities that are brought into the state to use them locally, or to distribute them to suppliers. The First Schedule of the KTEG Act, 1979, governs entry tax in Gujarat.
Note: Entry Tax has been replaced by the Goods and Services Tax(GST) starting 1 July 2017.
Goods are taxable for entry only when they have been brought to a particular local area for use, consumption, or simply for sale. When you are transporting goods for consumption from a state to the other, in other words for trade, as a transporter for these goods an entry tax is charged. Certain goods are taxable under this. These goods fall under the First Schedule (of the KTEG Act. 1979) which we will list later in this article.
Goods Covered under the Entry Tax in Gujarat
Gujarat is extremely industrious as a state. There are several plants, industrial towns along with 3 major ports in the state. This makes the entry tax of certain goods very important and essential. Here are the main product as well as their rate of entry tax in Gujarat.
- Rate of Tax 1 2 3 1 Motor vehicles which includes chassis of the motor vehicles as well as the body which has been built on chassis of motor vehicles is charged for entry in the state at 15%. Gujarat has several car manufacturing units which calls for importance of this tax.
- Cement is also charged at 15% with heavy requirements of construction in the state.
- Marbles or the more refined of marble being Granite (raw or polished ) is charged at 15%.
- Kota stones popular in Rajasthan and Gujarat is taxed at 15% as well.
- Naphtha is also taxed at 18.5 %.
- Light Diesel oil is charged 15% entry tax while high speed diesel oil is taxed 24%.
- Yarn of all sorts other than the following are charged at 5%.
- Nylon Yarn,
- Polyester Viscose yarn and
- Cotton yarn.
Due to Gujarat being an extremely industrial state, the entry tax in the state are deliberately made high with the lowest being 5% and the the highest being 24%.