Changes in the Sales Tax Rules, 2006

Certain amendments have been made in the Sales Tax Rules 2006 vide SRO 494(I)/2015. Some of the important changes are as under:

i)              New rules for registration, de-registration, suspension and blacklisting etc. have been issued. The concept of biometric verification of applicants has been introduced along with other changes e.g. GPS-tagged photographs of the business premises, office equipment, electricity meter and gas meter, etc.

ii)            A concept of temporary registration has been introduced for persons importing machinery for installation at their premises. The temporary registration is meant for intending manufacturers importing machinery. The registration will be valid for a period of 60 days.

iii)          Concept of non-active taxpayer has also been introduced, in line with the change made in the Sales Tax Act in the budget 2015-16.

iv)          A new Chapter VIII-A has been introduced for import or supply of exempt goods to organizations or agencies under grants -in-aid.

v)            A new Chapter XIV-A has been introduced for restaurants/hotels for their monitoring and tracking by electronic or other means. Such restaurant/hotels will be required to give continuous and full remote as well as on-site access to the tax department to their computerized system.

Another Chapter XIV-B has been added for electronic monitoring and tracking of aerated waters, cigarettes, fertilizers, cement and sugar. Under this Chapter the manufacturers or importers shall be required to affix tax stamps, banderoles, stickers, labels, barcodes, etc. on each packet/packing. This new Chapter will be made effective at a subsequent date through a notification.