AP to reduce VAT on alcoholic beverages to bring Telangana tariffs closer

The Andhra Pradesh State Assembly on Thursday passed the Andhra Pradesh Value Added Tax Bill 2021 (Amendment) and the Goods and Services Tax Bill (Amendment ) of Andhra Pradesh, 2021 to reduce VAT rates on alcoholic beverages.

Speaking on the occasion, Buggana Rajendranath Reddy, Minister of Finance, said that under the Andhra Pradesh Value Added Tax Act 2005, alcoholic beverages intended for human consumption are currently taxed at rates ranging from 130 to 190%.

Stating that Telangana reduced the VAT rate to 70% on all categories of alcohol intended for human consumption in 2016, the finance minister said the government had decided to rationalize the VAT rates on various categories of alcohol. with neighboring states and thus introduced the 2021 Andhra Pradesh Value Added Tax (Amendment) Bill to reduce VAT rates on alcoholic beverages.

Referring to the 2021 Andhra Pradesh Goods and Services Tax (Amendment) Bill, the Minister of Finance said that the Goods and Services Tax provides for the collection and collection of taxes on the supply intra-state goods and services by the state government and that changes were underway. to control tax evasion or to reduce the compliance burden on taxpayers.

The bill was introduced to amend section 7 of the Andhra Pradesh Goods and Services Tax Act 2017 to ensure the levying of a tax on activities or transactions involving the supply goods or services by any person, other than an individual, to its members or constituents or vice-presidents. versa, in cash, deferred payment or other valuable consideration.

Input tax credit

The minister said the bill seeks to amend section 16 of the law to provide that the input tax credit on the invoice or debit note can only be used when the details of that invoice or note have been provided by the supplier in the Outgoing Supply Statement and these details have been communicated to the recipient of that invoice or debit note.

Another amendment was made to Articles 35 and 44 of the Law to remove the mandatory requirement to have the annual accounts and reconciliation statement submitted by a specified professional audited and to remove the mandatory requirement to provide a reconciliation statement duly audited by a specified professional and provide for filing of the annual declaration on the basis of self-certification.

The bill today passes the amended section 50 of the law to retrospectively charge interest on net cash debt, the minister said and added that the amendment to section 74 was intended to make the seizure and confiscation of goods and means of transport in transit a separate procedure from tax collection, according to a statement.

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