At its very first cabinet meeting the Arjun Munda-led NDA government on Wednesday, among other things, decided to defer implementation of Vat as the state was not yet ready with the legislation for it (in the shape of its own set of rules).
Although it is being said that the decision to defer implementation of Vat was taken as the state was yet to complete its framing of rules, senior sales tax officials connected with both, the framing of rules and its implementation, have been surprised by the governments stand.
It is not known as to the period for which its implementation has been deferred.
As recently as on March 6, a team of senior sales tax officials along with a hired consultant had descended on the Singhbhum Chamber of Commerce & Industry (SCCI) to make before its members a detailed presentation on the subject.
Almost all aspects of its working was explained to the business community who had turned out in large numbers to understand the subject which till then was thought would surely to be implemented by the state from April 1.
Even on that date (March 6), officials had conveyed that rules for implementation of Vat were almost on the verge of being finalised and that they were confident that the state was prepared to implement Vat from April 1.
Talking to FE from Ranchi on Thursday, a senior official of the state sales tax department connected with implementation of Vat said, we are at the stage of almost finalising the rules for Vat; however, for the time being its implementation is being deferred.