Question

I need to know about Entry Tax of Diesel purchase from another state, Brif details is given below, We are manufacturer in Vapi(Gujarat) and we had purchase Diesel from one Vendor located in Dadra And Nagar Haveli(UT) now as per old regime provision we have to Pay Entry Tax on petrolium purchase for another state, and as per GST provision, Petrolium product is still out of GST Era and due to this whether we have to Pay Entry Tax on it?

Answer

Prior to GST entry tax was levied by states, but with introduction of GST entry tax including other taxes are subsumed into GST. However petroleum products are outside the purview of GST and states have the power to tax the same as per old law.

Karnataka Government has abolished entry tax wef 1st July 2017. However other states are yet to abolish the same. Therefore you are required to check the status of your state whether it is abolished or not in your state. In addition write a letter under RTI to state to update the status of entry tax in your state. (Reply dt.01/09/2018)