Govt reduces time for VAT payment by business houses

Syllad | The Rising MeghalayaJuly 20, 2023

The state government has decided to reduce the period in which business houses have to pay the value added tax (VAT).

After chairing a Cabinet meeting on Thursday, Chief Minister Conrad K Sangma told reporters that the idea is to streamline the entire process of VAT collection, which will have no impact on the tax levied on the consumers but will only ensure the efficiency of the collection and the timing of the collection is streamlined.

“With this there is no change in the rates and there is no impact on the consumers but small changes like the time within which the concerned business houses should pay the VAT collected to the government as per collection taking place so the timing of that has been changed,” Sangma said. 

“For example, earlier in the case of petrol pumps, they had a period of 3 months of reconciliation for the VAT so which means if the VAT was collected on day one they could wait till day 100 to pay the VAT money collected by them…so we have reduced that and we have made it to 30 days so within a month’s time they have to reconcile and whatever VAT has been collected they should submit it to the government’s exchequer,” he added.