|U/s 14 - CST on Declared Goods to be @ 5% from 01-04-2011|
It has been proposed in the Budget 2011-12 to increase the ceiling of 4% on declared goods under section 14 of CST Act to 5%. Currently State Governments cannot levy VAT more than 4% on declared goods.
Consequently all the goods in Schedule C of MVAT Act 2002 shall be taxable @ 5% from 01-04-2011 (as requisite amendment is done in MVAT Act 2002 through Maharashtra Finance Budget proposal announced on 23-03-2011).
Declared goods are those goods which are of special importance and have been defined u/s 14 of CST Act 1956. This increase has been made in view of recent increase in the VAT slab rate of 4% to 5% by many states.