One can say that the resources in India are unevenly distributed, leading to transfer of goods and products from one state to another. The system of entry tax ensures that these goods are accounted for, offering a certain source of income to state governments to improve conditions. While each state has different entry tax rules in place, one can broadly state that the person who brings goods from a particular place to the state concerned is the importer, who is liable to pay entry tax on the goods, depending on the policies in place. In simple words, every trader who brings goods which attract entry tax in a particular state is liable to pay the tax as per prevailing rates.<\/p>\n
At times it is not just goods, but also vehicles which are expected to pay entry tax when they cross state boundaries.<\/p>\n
Entry tax is imposed by state governments and is levied on the movement of goods from one state to another. To protect the tax base it is levied by the recipient state.<\/p>\n
The enforcement of entry tax in a state falls on the Department of Commercial Taxes, with a dedicated team in place in most states. This department is in charge of levy and collection of the tax, with check posts established at almost all major boundary crossings. Individuals who have to pay entry tax can do so directly at these check posts or to the jurisdictional office of Commercial Taxes within a specified time period.<\/p>\n
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\u2019t 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.<\/p>\n
In case of goods which have entered a state being returned (due to any reason), the person who brought them into the state can claim a refund on the entry tax paid. This refund can be claimed only within a specified time period (typically one month, which might vary from state to state).<\/p>\n","protected":false},"excerpt":{"rendered":"