Karnataka Entry Tax

Entry tax in Karnataka is charged when goods are transported into the state from another state. The goods on which the tax is levied include those that are brought into the state for the purpose of either consumption or distribution.

Note: Entry Tax has been replaced by the Goods and Services Tax(GST) starting 1 July 2017

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. These goods are taxable for entry only when they have been brought to a particular local area for use, consumption, or simply for sale.

Karnataka Entry Tax Rates

The rate of this particular tax is chargeable at 5% of the value of the goods in question. It should not exceed this amount unless mentioned otherwise or based on that particular location varying rate based on the panchayat or municipality.

List of Goods Covered under the Entry Tax in Karnataka

The following are the products that are charged for entry tax in Karnataka and their rates, which are based on the commodity, as well as not exceeding 5%.

  1. Entry for crude oil in the state of Karnataka, is chargeable at the maximum of 1%.
  2. Petrol as well as diesel as fuels is chargeable at 5% each, unlike crude oil.
  3. Super light diesel oil along with furnace oil is chargeable at 5%.
  4. Naphtha also requires entry tax in the state of Karnataka unless it is being used for manufacturing fertilizers at 5%.
  5. Low sulphur heavy stock is also levied with 5% taxation.
  6. When it comes to spirits, the entry tax is chargeable at 4%. However, this is restricted to neutral spirit, ethyl alcohol and rectified spirit.
  7. Some petroleum products are charged for entry tax in Karnataka. This however, exclude LPG or Liquefied Petroleum Gas along with Kerosene and Aviation fuel. Note, that Hindustan Aeronautics Limited is located in Bangalore, Karnataka, hence this state requires more aviation fuel as compared to other states, even if it is marginally. So, the petroleum products which are actually chargeable include:
    • Asphalt (Bitumen)
    • Lubricating oil
    • Brake or clutch fluid for vehicles
    • Transformer oil mostly used for electricity
    • Tar which is used for construction of roads and some other products.
  8. Sugar is also charged or entry at 1% with the exception of confectionary, levy sugar or similar products.
  9. Textiles are charged for entry in the state at 1%.
  10. All legal tobacco products are chargeable for this tax at 2% with the exception of snuff. Products that are chargeable include:
    • Cigars
    • Cigarettes
    • Churuts
    • Zarda
    • Quimam
    • Gutkha
    • Chewing Tobacco
  11. All sorts of machinery along with accessories and parts are charged for entry for Karnataka at 2%, with the exception of machinery required for agricultural purposes.
  12. Inter-floor or building transport machines such as escalators. Elevators along with their parts and accessories are chargeable at 5% entry tax.
  13. All sorts of films which include everything from photographic paper to x-ray films are taxed at 1%.
  14. Chassis along with motor vehicles are the only exception of having a very entry tax. It is chargeable at 13.5%. This should explain why the car prices are different in different states of the country.
  15. Trailers, tractors along with power tillers are taxed at 5% along with earthmovers which can be used on road.

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