Below is a table outlining the VAT (Value Added Tax) rates in Maharashtra, based on the provided information:
| Commodity / Service | VAT Rate | Description |
|---|---|---|
| Petrol, Diesel, Aviation Turbine Fuel (ATF) | 27% | High VAT rate applies to fuel products like petrol, diesel, and aviation turbine fuel. |
| Liquor | 25% | Alcoholic beverages are taxed at a significant rate. |
| Cigarettes and Other Tobacco Products | 25% | Tobacco products, including cigarettes, are heavily taxed to discourage consumption. |
| Precious and Semi-Precious Stones and Metals | 5% | Includes diamonds, rubies, emeralds, and similar precious items. |
| Gold Jewellery | 1.5% | Lower VAT rate applied to gold jewellery to make it more affordable. |
| Silver Jewellery | 3.5% | Silver jewellery is taxed at a slightly higher rate compared to gold. |
| General Goods | 12.5% / 5% | General goods are subject to either 12.5% or 5% VAT, depending on the specific category of the goods. |
| Electricity Charges | 3% | Electricity usage is taxed at a lower rate, aiming to keep it affordable for consumers. |
| Restaurants and Eateries | 13.5% | Food and beverages served at restaurants are taxed at this rate. |
| Works Contracts | 5% | VAT on works contracts (construction, repair, etc.) where the contractor provides both materials and services. |
| Transfer of the Right to Use Goods | 5% | Applicable to transactions where there’s a transfer of the right to use goods without transferring ownership. |
| Leasing of Goods | 10% | Leasing or renting of goods is subject to a 10% VAT rate. |
Additional Notes:
- High VAT Rates on Fuel and Sin Goods: The highest VAT rates are applied to petrol, diesel, aviation fuel, liquor, and tobacco products to generate substantial revenue and possibly discourage consumption.
- Lower VAT Rates on Precious Items: Precious metals and stones, as well as gold and silver jewellery, are taxed at lower rates, reflecting their luxury status and importance in cultural contexts.
- General Goods VAT: The VAT on general goods varies depending on the specific type of goods, with a split between higher and lower rates.
- Special Categories: Electricity, works contracts, and leasing of goods are taxed at specific rates to ensure fair pricing and taxation in these sectors.
This table provides a clear overview of how VAT is applied to different commodities and services in Maharashtra, reflecting the state’s tax policy as of June 30, 2017.