(1) Levy of Value Added Tax on Goods specified in the Schedule (Output Tax).- There shall be levied a Value Added Tax (output tax) on the turnover of sales of goods at rates hereinafter provided:
(a) In respect of goods specified in Schedule ‘A’, @ 1 paisa in a rupee.
(b) In respect of goods specified in Schedule ‘B’, @ 4 paise in a rupee.
(c) In respect of goods specified in Schedule ‘C’, at the rates shown against each of the entry.
(d) In respect of goods specified in Schedule ‘D’, exempt from tax.
(e) In the case of any other goods, at the rate of 121/2 paise in a rupee.
(2) Zero Rate for Exports.— (a) When calculating the output tax in relation to any dealer, sale of goods in course of export outside the territory of India shall be deemed as taxable at the zero rate.
(b) The Government may, by notification published in the Official Gazette and subject to such terms and conditions as may be specified in this behalf, extend zero rate of tax for transactions effected from 17[Domestic Tariff Area] to Special Economic Zone or for 100% export oriented units or Software Technology Park units or Electronics Hardware Technology Park units or for any such manufacturing or processing units as it may deem fit.
(3) Rate of Tax on Packing Materials.— Where any goods are sold and such goods are packed in any materials, the tax shall be payable on the sales of such packing material, whether such materials are separately charged for or not, at the same rate of tax, if any, at which tax is payable on the sales of goods so packed.
(4) Amendment to the Schedule.— (i) The Government may, by notification in the Official Gazette,—
(a) reduce any rate of tax,
(b) enhance any rate of tax, and may, by like notification, 18[add to, or omit from, or otherwise amend any entry of, the Schedule] and thereupon the Schedule shall be deemed to have been amended accordingly.
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(ii) Any notification issued under clause (i) shall take effect prospectively, either from the date of publication thereof in the Official Gazette or from such later date as may be mentioned therein.
(iii) The provisions contained in sub-section (4) of section 83 regarding rules made by the Government shall apply mutatis mutandis to any notification issued under clause (i), as they apply to rules made by the Government.
19[(5) Determination of rate of tax on Industrial Inputs.— The Commissioner may, on an application made by a registered dealer who is a manufacturer, by way of Notification in the Official Gazette, declare certain types or class of goods as industrial inputs for that dealer, in order to avail concessional rate of tax.]