Amaravati: The State Assembly on Thursday passed by voice vote the Andhra Pradesh Value Added Tax (Amendment) Bill, 2021 and the Andhra Pradesh Goods and Services Tax (Amendment) Bill, 2021, which were tabled by Finance Minister Buggana Rajendranath.
Speaking on the occasion, the Finance Minister said under the Andhra Pradesh Value Added Tax Act, 2005, liquor for human consumption is taxed presently at rates ranging from 130% to 190% and added that the Telangana has reduced the VAT rate to a flat 70% on all categories of liquor for human consumption during 2016. The Minister said In order to bring about parity in levy of VAT with the neighboring States, it has been decided to rationalise the rates of VAT on various categories of liquor for human consumption in the State and hence brought in Andhra Pradesh Value Added Tax (Amendment) Bill, 2021 to reduce the VAT rates on alcoholic beverages.
Referring to the Andhra Pradesh Goods and Services Tax (Amendment) Bill, 2021, the Finance Minister said Goods and Services Tax provides for levy and collection of taxes on intra-state supply of goods and services by the State Government and the amendments are being made for checking tax evasion or to reduce the compliance burden of the taxpayers. The Minister said the amendments to the Andhra Pradesh Goods and Services Tax Act, 2017, are to amend section 7 of the Act, to ensure levy of tax on activities or transactions involving supply of goods or services by any person, other than an individual, to its members or constituents or vice-versa, for cash, deferred payment or other valuable consideration.
The Minister said the bill intends to amend section 16 of the act to provide that input tax credit on invoice or debit note may be availed only when the details of such invoice or debit note have been furnished by the supplier in the statement of outward supplies and such details have been communicated to the recipient of such invoice or debit note.
He said another amendment is to amend Section 35 and Section 44 of the act so as to remove the mandatory requirement of getting annual accounts audited and the reconciliation statement submitted by specified professional and to remove the mandatory requirement of furnishing a reconciliation statement duly audited by specified professional and to provide for filing of the annual return on self-certification basis.
The Minister said the bill amends section 50 of the act to charge interest on net cash liability retrospectively and added that the amendment of section 74 of the act to make seizure and confiscation of goods and conveyances in transit a separate proceeding from the recovery of tax. The Minister said the bill amends section 75 of the act to clarify that "self-assessed tax shall include the tax payable in respect of details of outward supplies furnished under section 37, but not included in the return furnished under section 39. The Minister also listed out other amendments including amendment of section 83, section 107, section 129, section 130, section 151, section 152 of the Act.
The Andhra Pradesh Road Development Corporation (Amendment) Bill, 2021, introduced by Transport and Information and Public Relations Minister Perni Venkatramaiah, on behalf of Roads and Buildings Minister M Shankarnaryana was passed by voice vote.