On September 21, 2024, the Government of Andhra Pradesh issued a critical amendment to the Commercial Taxes Department’s earlier notification (G.O.Ms.499) dated September 28, 2018. This amendment pertains to the collection of a levy on intra-state taxable supplies facilitated for other suppliers.
Key Amendment Details
Reduced Levy Rate
The primary change in the notification is the adjustment of the levy rate:
- The previous rate of 0.5% (referred to as HALF PER CENT) has been revised to 0.25% (or “QUARTER PER CENT”).
This reduction in the levy rate aims to ease the financial burden on suppliers involved in intra-state transactions, making it more favorable for businesses operating within the state.
Implications of the Amendment
- Cost Savings for Suppliers: The reduction in the levy from 0.5% to 0.25% will lower the overall tax burden on businesses, potentially leading to cost savings that can be reinvested into operations or passed on to the consumers.
Effective Date
This amendment is retroactively effective from July 10, 2024. This means that suppliers should be able to apply this reduced rate for their transactions from that date onwards.
The recent amendment by the Government of Andhra Pradesh to the Commercial Taxes Department’s notification is a significant development for businesses engaged in intra-state taxable supplies. The reduction of the levy rate to 0.25% is a strategic move aimed at promoting economic activity and easing financial pressures on suppliers.
