GST subsumes entry tax, so civic body won’t impose it

The corporation had even decided to get a study conducted on the number of vehicles entering Chandigarh from other states.

Written by Hina Rohtaki | Chandigarh | Published:June 2, 2017 9:47 am

Chandigarh Municipal Corporation will not be imposing entry tax on commercial vehicles from other states as proposed. The UT Administration has informed the Municipal Corporation that Goods and Services Tax which would be enforced soon, already subsumes the entry tax.

Following a communication by the administration, the civic body at its own level, too, sought clarification from its chartered accountants, who stated that entry tax cannot be levied now.

MC Additional Commissioner Uma Shankar Gupta said, “When we had sent our proposal to the administration, they wrote to us that the GST subsumes the entry tax.”

Talking to Chandigarh Newsline, Mayor Asha Jaswal said, “Though we had passed it in the House, we will have to drop the idea of imposing entry tax now.”

The mayor said they would think of imposing green fee and accordingly, raise it in the House. The House had passed the agenda of entry tax to increase revenue generation for the cash-strapped MC. The tax had to be between Rs 100 for taxi and other commercial vehicles per entry and Rs 800 for 10-wheeler trucks per entry. However, ambulance, fire tender, police and government vehicles were to be exempted from this. Checkposts or barriers at entry points for tax collection were to be set up and the tax would earn the MC a good revenue.

The corporation had even decided to get a study conducted on the number of vehicles entering Chandigarh from other states.

Keshav Garg, CA and faculty for GST Indirect Tax Committee of ICAI, said, “With the implementation of GST, no state or UT can impose entry tax, octroi or any other kind of tax at its own level. Because GST would be under the direct control of the Centre only.”

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