Short title and commencement:-
1. (1) This Act may be called the GUJARAT SALES TAX (SECOND AMENDMENT) ACT, 1988.
(2) It shall come into force on such date as the State Government may, by notification in the Official Gazette, appoint.
Amendment of section 2 of Gujarat 1 of 1970:-
2. In the Gujarat Sales Tax Act, 1969 (hereinafter referred to as “the principal Act”), in section 2, in clause (32), after the words “general sales tax” the words “turnover tax” shall be inserted.
Amendment of section 3 of Gujarat 1 of 1970:-
3. In the principal Act, in section 3, in sub-section (4),-
(1) in clause (iii), for the letter and figures “Rs. 50,000”, the letters and figures “Rs. 75,000” shall be substituted;
(2) in clause (iv), for the letter and figures “Rs. .1,25,000”, the letters and figures “Rs. 2,00,000” shall be substituted;
Amendment of section 4A of Gujarat 1 of 1970:-
4. (1) In the principal Act, in section 4a, in sub-section (1),for the words “twenty paise in the rupee”, the words “twenty-five paise in the rupee” shall be substituted.
(2) the amendment made by sub-section (1), shall remain effective upto and inclusive of the 31st July, 1989.
Insertion of new section 10A in Gujarat 1 of 1970:-
5. In the principal Act, after section 10, the following section shall be inserted, namely:-
Levy of turnover tax on goods specified in Schedule II and III in case of certain dealers:-
“10A. (1) Where the turnover of either of all sales or of all purchases by any dealer liable to pay tax under section 3, except the dealer referred to in sub-clause (f) of clause (10) of section 2, has first exceeded Rs. 99,99,999 in any year, there shall be levied a turnover tax on the total turnover of sales effected by him of goods specified in Schedules II and III, at the rates specified in the Table below.
TABLE
S. No.
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Limit of turnover
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Rate of tax
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1.
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Where the total turnover is one crore of rupees or more but less than three crores of rupees.
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One per cent of the total turnover.
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2.
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Where the total turnover is three crores of rupees or more but less than five crores of rupees.
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One and one-fourth per cent of the total turnover.
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3.
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Where the total turnover is five crores of rupees or more.
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One and one-half per cent of the total turnover.
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(2) For the purpose of calculating the amount of tax payable under sub-section (1), the following shall be deducted from the total turnover of sales, namely:-
(a) resales of goods on the purchase of which the dealer is liable to pay purchase tax under section 16;
(b) resales of goods purchased by the dealer from a Registered dealer otherwise than on a certificate furnished under section 12 or 13;
(c) resales of goods purchased by the dealer from a dealer liable to pay tax under section 4, if a certificate as provided in the proviso to sub-section (1) of section 4 is furnished;
(d) sales of goods or resales of goods to which clause (b) or clause (c) does not apply, to a licensed dealer, a recognized dealer or a commission agent holding a permit who purchases on behalf of a principal, upto such dealer or commission agent, as the case may be, furnishing certificate as provided in section 13, by virtue of which the sale of goods specified in Schedule II-Part-A are exempt from sales tax, Schedule II-Part B are exempt from general sales tax, and Schedule III are exempt from both sales tax and general sales tax.
(e) sales of declared goods;
(f) sales of goods wholly exempt from payment of tax under section 49.
(3) For the purpose of calculating the limit of turnover for arriving at the rate of tax payable by a dealer under sub-section (1), deductions under clauses (a) to (f) of sub-section (2) shall be ignored as if no such deductions were permissible.
(4) The turnover tax shall be paid by the dealer before furnishing the declaration or return for the period in which the turnover either of all sales or of all purchases as computed from the commencement of the year first exceeds Rs. 99,99,999. The tax so payable shall be for the period from the commencement of the year to the end of the period covered by such declaration or return and the dealer shall continue to be liable to pay the turnover tax for that year for all the subsequent periods till the end of that year.
(5) Notwithstanding anything contained in this Act, no dealer shall collect any amount by way of turnover tax payable by him under this section.”
Amendment of section 11 of Gujarat 1 of 1970:-
6. In the principal Act, in section 11,-
(a) for the words and figures “under section 7, 8 or 10” the words, figures and letter “under section 7,8,10 or 10A” shall be substituted;
(b) in the marginal note, for the words and figures “section 7, 8 or 10” the words, figures and letter “section 7, 8, 10 or 10A” shall be substituted.
Amendment of section 15B of Gujarat 1 of 1970:-
7. In the principal Act, in section 15B, for the words “two paise in the rupee”, the words “four paise in the rupee” shall be substituted.
Amendment of section 46 of Gujarat 1 of 1970:-
8. In the principal Act, in section 46, in sub-section (1), for the word figures “section 56”, where they occur at two places, the words, figures and letter “section 10A or section 56 or both” shall be substituted.
Insertion of new section 55A in Gujarat 1 of 1970:-
9. In the principal Act, after section 55, the following section shall be and shall be deemed to have been inserted with effect from the 5th August, 1985.
Composition of tax:-
“55A. (1) The Commissioner may, in such circumstances and subject to such conditions as may be prescribed, permit every dealer referred to in sub-clause (f) of clause (10) of section 2 to pay at his option in lieu of the amount of tax (including additional tax) leviable from him under section 7, 8 or 10 in respect of any period, a lump sum by way of composition at the rate of two per cent of the total value of the works contract executed by him.
(2) The provisions of sections 13 and 51 shall not apply to a dealer who opts for composition of tax under sub-section (1)”.
Amendment of section 56 of Gujarat 1 of 1970:-
10. In the principal Act, in section 56, after sub-section (3), the following, sub-section shall be inserted, namely:-
“(4) Notwithstanding anything contained in sub-section (2), no dealer to whom section 55A applies shall collect any amount by way of sales tax, general sales tax, or, as the case may be, additional tax, on the sales referred to in sub-clause (c) of clause (28) of section 2 made during the period to which such composition relates.”
Amendment of Schedule I to Gujarat 1 of 1970:-
11. In the principal Act, in Schedule I,-
(1) entries at serial Nos. 29 and 54 shall be deleted;
(2) after entry 75, the following entry shall be added, namely:-
S. No.
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Limit of turnover
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Rate of tax
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“76
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Haar, Pavitra, Kalagi, Mugat, Modh, etc. made from artificial silk yarn and artificial silk yarn, waste.
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* * *”
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Amendment of Schedule II, Part A to Gujarat 1 of 1970:-
12. In the principal Act, in Schedule II, Part-A,-
(1) “in entry 15, in columns 3 and 4, for the words “Ten paise in the rupee”, the words “Twelve paise in the rupee” shall be substituted;
(2) in entry 16, in sub-entry (1), in columns 3 and 4, for the words “Five paise in the rupee”, the words “Six paise in the rupee” shall be substituted;
(3) for entry 26, the following entry shall be substituted, namely:-
1
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2
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3
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4
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“26
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(1) Drugs and medicines (other than those specified in entry 12 in Schedule I and entry 96 in this Schedule.)
(2) Vitaminised infant milk food sold in sealed containers.
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Six paise in the rupee.
Four paise in the rupee.
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Six paise in the rupee.
Four paise in the rupee.”
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(4) for entry 31, the following entry shall be substituted, namely:-
1
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2
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3
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4
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“31
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(1) Newsprint
(2) Paper, including strawboards and card boards, but excluding paper specified in entry 12, sub-entry (1) of this entry and entry 31A in this Schedule.
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Six paise in the rupee.
Eight paise in the rupee.
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Six paise in the rupee.
Eight paise in the rupee”;
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(5) For entry 32, the following entry shall be substituted, namely:-
1
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2
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3
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4
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“32
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Petroleum products excluding Light Diesel Oil, lubricants, kerosene, solvent oil, furnace oil, liquefied petroleum gas, naphtha, Low Sulfure Heavy Stock (LSHS) and motor spirit declared tax free under entry 39 in Schedule I.
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Ten paise in the rupee.
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Ten paise in the rupee.”
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(6) in entry 32 A, in columns 3 and 4, for the words “Ten paise in the rupee”, the words “Twelve paise in the rupee” shall be substituted;
(7) in entry 32 B, in columns 3 and 4, for the word “Do”, the words “Twelve paise in the rupee” shall be substituted;
(8) in entry 32 C, in columns 3 and 4, for the words “Seven paise in the rupee”, the words “Ten paise in the rupee” shall be substituted;
(9) after entry 32C, the following entry shall be inserted, namely:-
1
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2
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3
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4
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“32 D
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Light Diesel Oil.
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Seven paise in the rupee
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Seven paise in the rupee.”
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(10) for entry 34, the following entry shall be substituted, namely:-
1
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2
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3
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4
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“34
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(1) Soaps and detergents, excluding Shampoo and soaps specified in sub-entry (2).
(2) Toilet soaps sold at a price exceeding Rs.4/- per piece.
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Eight paise in the rupee.
Twelve paise in the rupee.
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Eight paise in the rupee.
Twelve paise in the rupee.
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(11) in entry 41, in columns 3 and 4, for the words “Ten paise in the rupee” the words “Twelve paise in the rupee” shall be substituted;
(12) in entry 43 in columns 3 and 4, for the words “Ten paise in the rupee” the words “Twelve paise in the rupee” shall be substituted;
(13) in entry 47, in columns 3 and 4, for the words “Twelve paise in the rupee” the words “Sixteen paise in the rupee” shall be substituted;
(14) in entry 49, in columns 3 and 4, for the word “Do”, the words “Six paise in the rupee” shall be substituted;
(15) in entry 55, in columns 3 and 4, for the words “Eight paise in the rupee” the words “Ten paise in the rupee” shall be substituted;
(16) in entry 61, in columns 3 and 4, for the words “Twelve paise in the rupee” the words “Fifteen paise in the rupee” shall be substituted;
(17) in entry 62,-
(i) in sub-entry (1), in columns 3 and 4, for the words “Twelve paise in the rupee”, the words, “Fifteen paise in the rupee” shall be substituted;
(ii) in sub-entry (2), in columns 3 and 4, for the words “Twelve paise in the rupee”, the words “Fifteen paise in the rupee” shall be substituted;
(18) in entry 67, in columns 3 and 4, for the words “Ten paise in the rupee”, the words “Twelve paise in the rupee” shall be substituted;
(19) in entry 69, in columns 3 and 4, for the words “Ten paise in the rupee”, the words “Twelve paise in the rupee” shall be substituted;
(20) in entry 76, in columns 3 and 4, for the words “Ten paise in the rupee”, the words “Twelve paise in the rupee” shall be substituted;
(21) after entry 120, the following entries shall be added, namely:-
1
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2
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3
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4
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“121
122
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Agate (Akik) stones and articles made therefrom.
Water-proof canvas.
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Four paise in the rupee.
Four paise in the rupee.
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Four paise in the rupee.
Four paise in the rupee.”
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Amendment of Schedule II, Part-B to Gujarat 1 of 1970:-
13. In the principal Act, in Schedule II, Part-B,-
(1) in entry 7A, in columns 3 and 4, for the words “Eight paise in the rupee”, the words “Ten paise in the rupee” shall be substituted;
(2) in entry 10, in columns 3 and 4, for the word “Do”, the words “Four paise in the rupee” shall be substituted.
Amendment of Schedule III to Gujarat 1 of 1970:-
14. In the principal Act, in Schedule III, after entry 12B, the following entry shall be inserted, namely:-
1
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2
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3
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4
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“12C
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Paan Masala
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Ten paise in the rupee
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Four paise in the rupee.”
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