02 August 2012
At the time of introduction of VAT, all the states have decided to rely only the HSN codes prescribed in the Central Excise Tariff for a uniform floor rates. Excise chapter heading and its notes are very much relevant for deciding the vat rate classification. But not mandatory to quote the excise chapter for every product.
We are marching towards GST regime and therefore in the near future, the excise tariff will be the base for state VAT also.
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