The Bill to amend the VAT Act was published on August 11, 2023, and the EY Tax Alert dated September 11, 2023, highlighted the proposed changes based on this Bill. Subsequently, during its passage through Parliament, a few significant changes were made, and the Bill was finally passed in Parliament on December 11, 2023, with these Committee stage amendments. This Tax Alert seeks to highlight some of the significant changes made to this legislation during the Committee stage.
Key Highlights
- Removal of more VAT exemptions effective from January 1, 2024 (Refer attached EY Alert for the list)
- No SVAT scheme/VAT deferment on imports removal (SVAT will continue)
- Changes to the VAT rate – 18% from January 1, 2024
- Changes to the VAT liable threshold – No change (Rs. 80 Mn will be remain as it is till another amendment Act)
