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What are the limitations of VAT?

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What are the limitations of VAT?
posted Jun 15, 2017 by Adarsh

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1 Answer

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Limitations of VAT

  • VAT was to be applied in all states but it failed to do so.
  • Inflation rate has been increased due to VAT.
  • VAT has complicated both tariff in customs and excise and Overburdend with more exemptions
  • VAT is regressive :- It’s burden falls disproportionately on Poor people since the poor are likely to spend more of their incomes
  • VAT is too difficult to operate from the position of both the Administration and business.
  • Monthly Return : The manufacturer is required to pay CenVAT on a fortnightly basis and submit a monthly return (ER1) to the Superintendent of Central Excise by the 10th of the month
answer Jun 15, 2017 by Sagar Sharma
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