Gujarat vat rate applicable

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Shah Devang S. (Querist)
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06 October 2015 we are mfg. of plane or printed label. we are purchase raw material paper roll form which made plane/printed paper label and another raw material purchase of polyester paper roll form which made polyester label in Gujarat state my query which vat rate are applicable both type sales of label in Gujarat ?(both paper Label or Polyester paper label)

N.T. for Referance raw Polyester roll form Excise Tariff head 39199090) (we have sale under Excise Tariff Head 48 as a label form).

Shah Devang S.

Shah Devang S. (Querist)
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08 October 2015 pl. Help us said Query

Asha Kanta Sharma online

Asha Kanta Sharma online

(Expert)
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27 July 2024 In Gujarat, the VAT rates applicable to different products, including labels made from paper and polyester, can vary based on the nature of the goods and their classification under the Gujarat VAT Act. Here’s a breakdown of how VAT might apply to your products:

### **VAT Rate for Labels in Gujarat:**

1. **Paper Labels:**
- **Classification:** Paper labels, whether plain or printed, typically fall under the category of paper products.
- **VAT Rate:** As per Gujarat VAT provisions, paper and paper products often attract a VAT rate of **5%**.

2. **Polyester Labels:**
- **Classification:** Polyester labels are made from polyester rolls, which might be classified under different tariff headings.
- **VAT Rate:** Polyester and similar synthetic materials may be classified under a different category, and their VAT rate can be subject to specific provisions. Generally, synthetic products may attract a VAT rate of **5%** or **14%** depending on their classification and the applicable notification.

### **Reference to Excise Tariff and VAT Classification:**

- **Excise Tariff Head for Polyester Rolls:**
- **Excise Tariff Head 39199090** refers to "Other articles of plastics and articles of other materials of headings 39.01 to 39.14".
- For VAT purposes, labels made from these rolls may be classified under the category of synthetic or plastic products.

- **Gujarat VAT Act Classification:**
- Labels made from various materials are subject to classification based on the material and their end use.
- **Notification and Circulars:** The exact VAT rate should be verified against the latest Gujarat VAT notifications and circulars.

### **Steps for Determining the VAT Rate:**

1. **Check the Latest Gujarat VAT Notifications:**
- Review any recent notifications issued by the Gujarat VAT authorities that specify the VAT rates for different categories of goods, including labels.

2. **Consult VAT Authorities or Tax Professionals:**
- For accurate classification and VAT rate determination, consult with a local VAT authority or a tax professional who can provide guidance based on the latest legal framework and your specific product details.

3. **Review Your Product Classification:**
- Ensure that your products (both paper labels and polyester labels) are classified correctly as per the Gujarat VAT Act to apply the correct VAT rate.

### **Summary:**
- **Paper Labels:** Likely to attract VAT at **5%**.
- **Polyester Labels:** Typically attract VAT at **5%** or **14%** depending on specific classification and applicable provisions.

Always refer to the most recent notifications and consult with a tax professional for the most accurate and up-to-date information regarding VAT rates and classifications.

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