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Entry Tax in Karnataka

Entry tax is a tax imposed by state governments in India on the movement of goods from one state to another. It is levied by the recipient state (the state to which the goods are being moved for consumption or distribution) for protecting its tax base.

Levy of Entry Tax in Karnataka

In the state of Karnataka, entry tax is regulated by the Karnataka Tax on Entry of Goods Act, 1979. According to Section 3(1) of the Act, tax shall be levied on the entry of goods (specified in the First Schedule) into a local area for consumption, use or sale therein, at rates not surpassing 5% of the value of the goods as may be specified. Different rates may be applied for different goods or different classes of goods or different local areas.

Karnataka Entry Tax Rates

As stated above, goods that fall under the First Schedule of the KTEG Act. 1979, shall attract an entry tax of up to 5%. The tax amount shall not exceed this percentage unless otherwise mentioned by the state government. It shall be paid by registered dealers who bring goods into a local area. They can be acting on their own account or on account of the principal or another person or who takes delivery or are entitled to take delivery of the goods into a local area.

Goods Covered under Karnataka Entry Tax

The goods listed under the First Schedule are as follows:

  • Air-conditioning plants, air coolers and air conditioners and parts thereof.

  • Arms of all kinds including guns, rifles, revolvers, pistols and ammunition for the same.

  • Batteries and parts thereof including dry cells and dry cell batteries.

  • Brass, bronze and copper articles including sheets circles, rods, rounds, squares, and flats made of brass, bronze and copper but excluding those specified elsewhere.

  • Bricks and tiles other than those specified elsewhere.

  • Bullion and specie and articles made o

  • Chicory powder.

  • Cigar and cigarette cases, holder and lighters, and tobacco pipes.

  • Cinematographic, photographic and other cameras, projectors,enlargers, lenses and parts and accessories thereof.

  • Clocks, timepieces and watches (all kinds) and parts thereof including watch straps and chains (made of base metals.)

  • Coir products including rubberised coir products

  • Confectionery, biscuits and cakes.

  • Copper Sulphate.

  • Cotton yarn waste and cotton waste.

  • Crockery and cutlery.

  • Deodorants, disinfectants, germicides other than those falling under any other entry.

  • Dictaphones and other similar apparatus for recording sound and parts and accessories thereof.
  • Diesel engines and parts thereof.

  • Dry fruits including almonds, walnuts and pista

  • Druggets and durries.

  • Dyes

  • Edible oils including hydrogenated oil and cooking medium.

  • Electrical and electronic goods, appliances, instruments and apparatus and parts and accessories thereof but excluding those specified elsewhere.

  • Fiberglass sheets and articles made of fiberglass.

  • Films (all kinds) including X-ray films.

  • Firefighting equipment and devices.

  • Fireworks and colour matches.

  • Foamed rubber, plastic foam or any other synthetic foam articles such as sheets cushions, pillows, mattresses and the like.

  • Food and non-alcoholic drinks that is to say: -

    • Ready to serve foods, processed foods, semi cooked or semi processed food stuffs, fruits (other than dry fruits including almonds, walnuts and pista) and dried vegetables products (whether cooked or not), fruits and vegetables products when sold in tins, cans, bottles or in any kind of sealed containers.
    • Instant mix, such as jamoon mix, idli mix, ice cream mix, jelly mix and the like; sambar and rasam powders and pastes, curry powder and pastes, and the like; soft drink concentrates (other than fruit and vegetable concentrates) whether in liquid or powder or crystal form.

    • Aerated water including ready to drink soft drinks whether or not flavoured or sweetened and whether or not containing vegetable or fruit juice or fruit pulp when sold in bottles, tins, cans or in any kind of sealed containers but excluding soft drinks concentrates.

Food preservatives, food colours and food flavours.

  • Footwear and polishes.

  • Furniture of all kinds, including treasure chest, safes and lockers and parts and accessories thereof.

  • Furs and skins and articles made therefrom including hides and skins.

  • Glass sheets and all articles made of glass.

  • Gramophones of every description and accessories and parts thereof.

  • Gramophone records and needles.

  • Hardware, that is to say:-

    • fittings of doors, windows and furniture (made of base metal and alloy thereof).
    • bolts, nuts and rivets, screws of base metal or alloy thereof including bolt ends, screw studdings, self tapped screw, screw hooks, screw rings, wire nails, measuring tapes and scales.
    • Metallic barbed wire, metallic wire, metallic wire mesh and metallic wire nettings.
  • Industrial gas, such as oxygen, acetylene, nitrogen and the like.

  • Insecticides, pesticides, weedicides, fungicides and plant nutrients and plant regulators.

  • Ivory and sandalwood articles including sandal wood oil.

  • Jaggery.

  • Kitchenware (all kinds) used for cooking as well as serving.

  • Laminated, impregnated or coated matting materials such as linoleum generally used for floor covering (other than floor tiles).

  • Leather goods other than footwear and those specified elsewhere.

  • Lifts, elevators and escalators whether operated by electrically or hydraulic power.

  • Liquor including arrack and toddy.

  • Machinery (all kinds) and parts and accessories thereof but excluding agricultural machinery.

  • Man made or synthetic staple fibres, fibre-yarn, or filament yarn (all kinds) Marble slabs and articles made therefrom.

  • Medicinal and Pharmaceutical preparations.

  • Mill yarn (all kinds) excluding cotton yarn and those specified elsewhere.

  • Mineral water sold in container.

  • Motor vehicles (all kinds) and parts and accessories thereof including chassis of Motor Vehicles.

  • Non-edible oils (other than petroleum products and those specified elsewhere) Oil cake.

  • Opium, Ganja and Bhang.

  • Optical goods (all kinds) including spectacles, sunglasses, goggles, lenses and frames including attachment parts and accessories thereof.

  • Paints, colours, varnishes, pigments, polishes, indigo, enamel, bale oil, white oil, turpentine (all kinds), thinners, primers and paint brushes.

  • Paper (all kinds) including carbon paper, blotting paper, waterproof paper, PVC coated paper, ferro paper, ammonia paper, stencil paper, but excluding photographic paper; pulp boards, art boards, duplex boards, triplex boards, cardboard, corrugated boards and the like; cellophane.

  • Packing materials namely: -

    • fibre board cases, paper boxes, folding cartons, paper bags, carrier bags and card board boxes, corrugated board boxes and the like.
    • tin plate containers (cans, tins and boxes) tin sheets, aluminium foil, aluminium tubes, collapsible tubes, aluminium or steel drums, barrels and crates and the like;
    • plastic, poly-vinyl chloride and polyethylene films bottles, pots, jars, boxes, crates, cans, carboys, drums, bags and cushion materials and the like;
    • wooden boxes, crates, casks and containers and the like;
    • gunny bags, bardan (including batars), hessian cloth, and the like;
    • glass bottles, jars and carboys and the like;
    • laminated packing materials such as bituminised paper and hessian-based paper and the like; Petroleum products, that is to say, petrol, diesel, crude oil, lubricating oil, transformer oil, brake or clutch fluid, bitumen (asphalt), tar and others, but excluding aviation fuel, liquid
  • petroleum gas (LPG), kerosene and naphtha for use in the manufacture of fertilizers.

  • Photographic paper and photo albumsPipes, tubes and fittings of iron and steel other than those specified in section 14 of the Central Sales Tax Act, 1956), cement and asbestos.

  • Plastic sheets, granules and articles made from all kinds and all forms of plastic including articles made of polypropylene, polystyrene and like materials

  • Playing cards of every description.

  • Precious stones namely diamonds, emeralds, rubies, real pearls and sapphires and articles in which such precious stones are set, semi-precious stones and articles in which such semi-precious stones are set.

  • Pressure cookers and parts and accessories thereof Raw-wool, woolen yarn and woolen blended yarn Readymade garments including caps, neck ties and bows.

  • Refrigerators, including deep freezers, bottle coolers, water coolers, cold storage equipment and the like and parts thereof Rolling shutters and collapsible gates whether operated manually, mechanically or electrically and their parts.

  • Roofing, light roofing and false roofing materials including cement and asbestos sheets, asphalt sheets, straw boards hard and soft boards, plywood, veneered boards and panels and laminated sheets.

  • Rubber, that is to say: -

    • Rubber plates, sheets and strips unhardened whether vulcanised or not and whether combined with any textile material or otherwise.
    • Piping and tubing of unhardened vulcanised rubber.
    • Transmission, conveyor or elevator belts or belting of vulcanised rubber whether combined with any textile material or otherwise.
    • Synthetic rubber including butadiene rubber and butyls rubber, synthetic rubber latex including prevulcanised synthetic rubber latex.
    • Rubber articles, that is, articles made wholly of rubber (other than those specified elsewhere).
  • 1[80. Raw materials component parts and inputs which are used in the manufacture of an intermediate or finished product]1 Substituted by Act 5 of 2001 w.e.f. 1.4.2001

  • Rubber and other tyres, tubes and flaps other than those specified in Section 14 of the Central Sales Tax Act, 1956.

  • Sanitary fittings of every description excluding pipes and fittings of stoneware, cement, iron and steel.

  • Slotted angles and ready to assemble parts of steel racks.

  • Soaps, Soap flakes, soap powders, detergent powders and liquids and laundry brighteners.

  • Sound transmitting equipment including loudspeakers and Parts thereof excluding telephones and its parts.

  • Spirits and alcohol, that is to say: -

    • denatured spirit:
    • rectified spirit:
    • ethyl-alcohol:
  • Stationery articles namely: -

    • Account books, paper envelopes, diaries, calendars, race cards, catalogues, greetings cards, invitation cards, humour postcards, picture postcards, cards for special occasions and stamps albums.
    • office desk materials.
    1. Stones, that is to say: -
    • Granite stones, slabs and chips
    • Cuddapah stones and slabs
    • Shahabad stones and slabs
  • Stoves and parts and accessories thereof.

  • Sugar other than confectionery and the like.

  • Suitcases, briefcases, attached cases and despatch cases including those made of leather but excluding steel trunks.

  • Silk yarn that is to say, twisted or thrown silk yarn, spun silk yarn and noil silk yarn.

  • Telephones of every description and parts thereof.

  • Textiles namely cotton, woolen or silk or artificial silk including rayon or nylon and other man-made or synthetic fabrics manufactured in mills or powerlooms and hosiery cloth in length, and including fabrics coated with or impregnated with P.V.C. or cellulose derivatives (whether or not manufactured in mills or powerlooms.)

  • Tiles (all kinds) used for floors and walls other than those specified elsewhere.

  • Tobacco products of all description including beedies, cigarettes, cigars, churuts, snuff, zarda-quimam etc.

  • Toilet articles (whether medicated or not) except toilet soaps but including razors and razor blades and cartridges.

  • Typewriters and parts and accessories thereof and typewriter ribbon.

  • Vacuum flasks and refills.

  • Weights and measures.

  • Wireless reception instruments and apparatus including televisions and components thereof; amplifiers and synthesisers.

  • X-ray apparatus.

  • Goods other than those specified in any of the entries in this schedule, but excluding those specified in the second schedule.]

Source: ctax.kar.nic.in/acts/kentryt/kteg.pdf

FAQs on Entry Tax Karnataka

Who levies entry tax?

Entry tax is levied by the recipient state i.e. the state where the goods are being moved to.

Who is liable to pay entry tax?

Entry tax has to be paid by dealers, who during the course of their business, bring or cause to be brought into a local area any goods or are entitled to take delivery of goods on its entry into a local area.

When was entry tax introduced?

Entry tax was introduced on 1 September, 2000

What is the entry tax levied in Karnataka?

The entry tax levied on goods that fall under the First Schedule is at such rates not exceeding 5% of the value of the goods.

Is entry tax levied on agricultural machinery?

No, entry tax is exempted for agricultural machinery.

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