Haryana govt amends state's VAT Act

The Haryana government today amended the provisions of Schedule 'E' of the state's Value Added Tax Act, 2003 which restricted the claim of input tax credit (ITC) on purchases made from within the state to the extent of tax payable on inter-state sales.
The trade and industry associations in the state, especially the cotton ginners, had raised a concern that due to the amendment in Schedule 'E' dated September 7, 2015, a restriction had been put on the claim of ITC on goods sold in the course of inter-state sales, an official release said.
This placed them at a disadvantage when compared with dealers of the neighbouring states, as the goods manufactured and sold by the Haryana dealers became costlier due to restriction on claim of ITC.

With today's amendment to Schedule 'E', all the manufacturers in the state, including cotton ginners, will be able to avail the same ITC as was available to them before the amendment dated September 7, 2015.
"Genuine traders will also be benefited by this amendment as they will get full ITC on trading of goods leviable to tax at the rate of five per cent (i.E goods mentioned in Schedule 'C' and 'declared goods')," it added.