Indore (Madhya Pradesh): Natural gas, which is currently out of GST regime, should either be brought under the ambit of GST or it would be justified to give the benefit of input credit of the tax paid on its purchase even in the VAT regime.
This was said by senior tax consultant Amit Dave, while addressing a workshop, which was jointly organised by Commercial Tax Practitioners’ Association (CTPA) and MP Tax Law Bar Association (MPTLB). It was organised to discuss technical problems and practical difficulties prevailing in the pre-existing VAT law (currently applicable only on notified goods). Senior tax advisor Dave while drawing the attention of the State Government said that natural gas is not included in GST and VAT is levied on it at the rate of 14% under VAT legislation. But the buyer businessman does not get input tax rebate on such tax paid.
The said provision is not at all justified because of non-availability of input tax rebate. The use of natural gas for making products like electric bulbs and tubes etc. is attracting double taxation. This situation is leading to an escalation of the cost of such products unnecessarily due to non-availability of input tax rebate.
Drawing the attention of the state government, Dave said that, in the past, in the Saral Bakaya Samadhan Yojana outstanding recovery cases up to the year 2016-17 were settled. It would be appropriate to bring a similar scheme for the year 2017-18 as well. Advocate AK Gaur, senior tax consultant and former president of CTPA drew the attention of the state government and VAT department on some major issues related to VAT legislation.
He said that according to the provisions mentioned in section 47(1) of the VAT legislation, the commissioner has the right for (revision) and can investigate by asking for the record of the order passed by an officer on his own accord. After the necessary investigation and hearing the concerned businessman he can pass a revised order which does not adversely affect the businessman.
