Gujarat launches country's first VAT software

The state government launched country's first software on VAT"� dealer accounting software (DAS), to give clarity and allow dealers to file returns and get information about VAT, which is to be implemented from April 1 in the state.

DAS can be downloaded from 'www.commercialtax.gujarat.gov.in' website and also from the government's website.

The software checks the tax that will be levied on and there will be self assessment. It will be distributed to dealers free of cost.

"The implementation of VAT will eliminate double taxation. This will also bring transparency in tax collection," Saurabh Dalal, state finance minister said at a press meet said.

He said dealers can also post queries on the website for any clarifications.

Further he said the government will start with 100 major companies for online payment system.

The state revenue is expected to grow by about 13 per cent in the first year of VAT implementation, he said. The sales tax would now be replaced by commercial tax and the prices might fall by 2-4 per cent, he added.

Taxes on farsan and other eatables have been exempted while taxes on agriculture inputs, kirana and spices, packaging materials and handicrafts articles will be four per cent, he said.

The prices of petrol and diesel, however, may increase by 13 and 22 paise, respectively with VAT implementation.

"The prices of petrol and diesel are controlled by companies and not based on demand and supply. The tax on petrol and diesel will be 24 and 26 per cent, respectively," he added.

About 30,000 dealers have visited the website and 800 have registered in two days.

There are more than three lakh dealers in the state and the government has asked them to register by April 9.

Once registered, dealers can download various forms including invoice, returns for quarterly or monthly from the website.

"As dealers have to register, the commissionerate office can validate the information they provided. There will be a secure transaction between the dealer and commissionerate. This will also help immediate suspension of dealer in case for any tax irregularities," he said.