The Chief Minister (Finance Minister), Smt. Vasundara Raje presented Rajasthan State Budget in the State Assembly on 8-3-2017. The highlights of Rajasthan State Budget – 2017-18 are summarised as under:
In the Budget Speech the Hon’ble Chief Minister highlighted the preparation regarding GST as under:
• Officers trained for the proposed GST Law. 75 officers trained as master trainers on the Goods and Services Tax Network who, in coming months, would train officers and dealers regarding IT network
• Centralised Call Centre and Simulation Centre for GST to be established in Jaipur.
• To educate the stakeholders, workshops organised at Divisional and District levels.
• About 80% of the registered dealers have migrated to GST through primary enrolment.
• At Divisional and District level, GST help desk to be established.
• Commercial Taxes Department to be reorganised looking into the requirements under GST.
1. Amnesty Scheme – under RST/VAT & CST Acts: The Government of Rajasthan has introduced Amnesty Scheme, 2017 under RST/VAT & CST Acts. The Scheme shall remain in force w.e.f. 8-3-2017 to 30-4-2017.
Applicability of the Scheme: The Scheme shall be applicable to the dealer or person against whom total outstanding demand as on 8-3-2017 is less than rupees thirty crore and which has been created up to 31-12-2016 under the following Acts:
i. The Rajasthan Sales Tax Act, 1954;
ii. The Rajasthan Sales Tax Act, 1994;
iii. The Rajasthan Value Added Tax Act, 2003; or
iv. The Central Sales Tax Act, 1956.
Benefits under the Scheme: The demand of interest, penalty and late fee shall be waived to the extent as mentioned in the Notification No. F.12(14)FD/Tax/2017-92 dated 8-3-2017.
2. The Deemed Assessment Scheme under RVAT, CST, Entry Tax, Luxury Tax and Entertainment Act is to be introduced for the year 2015-16 and subsequent years.
3. Those dealers who have opted for Composition Scheme for exemption under Sarafa, Gems & Stone, Petroleum Retail Outlet and Tent Dealers, but could not fulfil the condition of Composition Scheme, have been given relief on payment of additional exemption fee and interest and may avail the benefit on or before 31-5-2017.
4. The rate of composition fee for dealers covered under section 3(2) has been notified and notification dated 11-4-2006 has been superseded and in view of amendment made in the section 3(2) of the RVAT Act, 2003, the rate of tax for different categories has been notified separately. Thus now manufacturer as specified in section 3(1)(b) will be liable to pay composition fee @ 2% having turnover up to ₹ 50 lakhs and the dealers covered under section 3(1)(c) having turnover up to ₹ 75 lakhs will be liable to pay composition fee @ 0.5% w.e.f. 1-4-2017.
5. In case of those industrial units who availed the benefits under the Sales Tax Exemption Scheme, 1987 and who could not comply with the condition of maintaining the average production for next 5 years, which are presently closed or declared sick under the BIFR and have not sold their land for the purpose other than industrial use, have been given relief under the CST Act.
6 (i) The proviso to Rule 21(8) of RVAT Rules, 2006 has been substituted and it has been provided that the Dy. Commissioner (Admn.) may allow the dealers for submission of application for cancellation of declaration forms up to the period of two years from the date of generation of such Form or up to 31-3-2017 whichever is later.
(ii) Notification No. 2017-95 – The proviso to Rule 17(14) of the Central Sales Tax (Rajasthan) Rules, 1957 has been substituted and it has been provided that the Dy. Commissioner (Admn.) can take application for cancellation of Forms up to period of two years from the date of generation of such Form or up to 31-3-2017 whichever is later.
7. As per amendment under Rule 40(8B) of RVAT Rules, 2006, for the year 2015-16 the awarder may furnish revised Form VAT-40E up to 31-3-2017. Further, new proviso to Rule 19(8) has been added for extending the time period to furnish revised VAT–11 up to 15-4-2017 due to generation of revised WCT TDS Certificates on the basis of revised Form VAT-40E.
8. No new tax in VAT, Entry Tax, Luxury Tax and Entertainment Tax except increase of VAT on cigarette by 15%.
9. Those contractors who have availed the benefits u/s. 8(3) of the RVAT Act and additional work is awarded or payment of addition receipt, were required to apply for exemption within 60 days. Now the time limit has been increased in such cases from 60 days to 2 years on payment of late fee.
10. If any dealer could not present appeal due to compulsory online filing, may file the hard copy along with memorandum and challans to the appellate authorities.
11. Notification No. 2017-88: Concessional rate for ATF @ 1% for the airline operator of RCS flights on RCS routes subject to conditions.
12. Notification No. 2017-89: Amendment in notification dated 2-6-2014 regarding sale to or purchase by Indian Railways of HSD subject to conditions.
13. Notification No. 2017-90: Exemption to sale or purchase by Indian Railways for the period 18-8-2008 to 1-6-2014 exceeding 10% on HSD subject to conditions.
14. Notification No. 2017-91: Amendment in Works Contract exemption notification dated 9-3-2015 w.e.f. 1-4-2015 substituting clause 3.1 of clause 3 of the said notification and providing for condonation of delay in filing of application within the time prescribed on payment of late fee. Further amendment also providing for condonation on payment of late fee regarding the submission of application for the additional work or enhancement of value of the contract. The term “date of award of works contract” in Form WT-3 is amended to “date of communication of additional work or enhancement of value of works contract, as the case may be”.
II. Entry Tax Act
1. Amnesty Scheme – under Entry Tax Act: The Government of Rajasthan has introduced New Voluntary Amnesty Scheme for Entry Tax – 2017 under the Rajasthan Tax on Entry of Goods into Local Areas Act, 1999. The Scheme shall remain in force w.e.f. 8-3-2017 to 30-4-2017.
Applicability of the Scheme: The Scheme shall be applicable to the dealer or the person against whom total outstanding demand as on 8-3-2017 is less than rupees Ten crores and which has been created on or before 31-12-2016.
Benefits under the Scheme: The demand of interest, penalty and late fee shall be waived to the extent as mentioned in the Notification No. F.12(14)FD/Tax/2017-96 dated 8-3-2017.
2. With effect from 8-3-2016, all kinds of yarn brought into local area in the State of Rajasthan exclusively for job work, has been exempted from Entry Tax subject to certain conditions.
3. The Government of Rajasthan has introduced Amnesty Scheme, 2017 under Entry Tax on Motor Vehicles Act. The Scheme shall remain in force w.e.f. 8-3-2017 to 30-4-2017. The scheme shall be applicable to the importer against whom any demand is outstanding under the Act as on 8-3-2017 and the same has been created up to 31st December, 2016.
III. Entertainment Tax Act
1. With effect from 1-8-2014 the Government of Rajasthan remits 100% Entertainment Tax leviable u/s. 4 of the said Act on the amount charged for rendering the service of online booking of tickets for admission to an entertainment by the service provider, on the condition that the amount of Entertainment Tax, so collected, is deposited with the Government.
IV. Electricity Duty
With effect from 8-3-2016, the exemption from Electricity duty, Water conservation Cess and Urban Cess payable by Jaipur Metro Rail Corporation on energy consumed in operation and maintenance of Metro Rail as specified in notification.
V. Stamp Duty Act
1. Stamp duty reduced from 5 to 3 per cent and registration fees to be reduced from one per cent to 0.25 per cent and maximum ₹ 10,000/- on partition deed of other than ancestral property.
2. Stamp duty on agreement to sale and power of attorney authorising sale of immovable property reduced from 3 and 2 per cent respectively to 0.5 per cent and registration fees on agreement to sale and power of attorney reduced to 0.25 per cent and maximum ₹ 10,000/-.
3. Stamp duty on the instrument of conversion of partnership firm, private limited company or unlisted public company into Limited Liability Partnership reduced to 0.5 per cent and registration fee reduced to maximum ₹ 10,000/-.
4. 100% exemption from interest and penalty allowed under the Amnesty Scheme if the stamp duty due is deposited up to 30-4-2017.
5. Stamp duty exempted on the instrument of transfer of sick micro small enterprise as defined in the Rajasthan Sick Micro and Small Enterprises (Revival and Rehabilitation) Scheme, 2015?
6. Other changes are made under Stamp Duty Act.
VI. Proposed amendments in the various Acts as per Finance Bill, 2017 issued on 8-3-2017
1. Section 3(2) of the RVAT Act 2003 with immediate effect has been substituted and the same is as under:
“(2) Notwithstanding anything contained in sub-section (1) a dealer other than those specified in clause (a) of sub-section (1) or the dealer or class of dealers as may be notified by the State Government, who purchases goods from a registered dealer of the State and sells, such goods or goods manufactured from such goods within the State, may opt for payment of tax on his turnover excluding the turnover of the goods specified in Schedule I, at the rate as may be notified under sub-section (3) of section 4, subject to the condition that annual turnover of such dealer does not exceed –
(i) Rupees fifty lakhs, in case of a dealer specified in clause (b) of sub-section (1); and
(ii) Rupees seventy five lakhs, in case of other dealer”.
2. Section 4 of the RVAT Act, 2003 has been amended with immediate effect and after section 4(3) the following proviso has been added:
“Provided that the State Government may notify different rates for different class of dealers”.
3. Section 32A has been inserted in the Luxury Tax Act given power to State Government to waive penalty and interest in certain cases.
4. Section 9D under Entertainment Tax Act has been inserted giving power to State Government to waive penalty and interest in certain cases.
5. Amendments had been made in the Rajasthan Stamp Act, 1998.
VII. Rajasthan Investment Promotion Scheme – 2014
1. Earlier investment in all kinds of edible oil extracting or manufacturing industry including ghanies, expellers except solvent extraction plants with oil refineries were not covered under the eligible list for benefits of subsidies and exemptions under RIPS 2014. However, as per amendment notification dated 8-3-2016 the above industries are now deleted from the non-eligible list and can avail the benefits, subsidies and exemptions under RIPS 2014.
2. Amendment under RIPS 2014 are incorporated for grant of additional benefits of subsidies and exemptions to the units established in a backward or most backward area to promote additional employment.