Meaning of entry tax

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What is entry tax under Indian Tax

 

Entry Tax:

This post explains about entry tax

Entry Tax is a tax on the movement of goods from one state to another imposed by the state governments in India. It is levied by the recipient state to protect its tax base. The tax was introduced on 1 September 2000.

The tax applies to dealers, industrial, commercial or trading undertakings, central and state government companies, firms, societies and clubs which carry on business.

The products which attract entry tax in a state depend on a number of factors, with resource availability being one of them. Typically, essential commodities like milk, sugar, rice, etc. do not attract any entry tax (depends on state policies in place), while those which aren’t considered essential for basic living can attract entry tax. Some of the general products on which an entry tax is levied are oil, LPG, electronic goods, furniture, paints, computers, etc. This list can be altered by a state government from time to time and individuals who deal with such products are expected to check their entry tax liability for the state concerned.

With the introduction of GST, Entry Tax no more exist in the tax collection system.

The information on entry tax is detailed above.   Comment below your thoughts on entry tax

 

 

 

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