Supreme Court Clarifies "Purchase Price" in Gujarat VAT Act: Excludes Non-Claimed VAT from Taxable Turnover Calculations.

The Supreme Court interpreted the definition of "purchase price" u/s 2(18) of the Gujarat Value Added Tax Act, 2003 (GVAT Act). It held that purchases on which value added tax is neither claimed nor granted are required to be excluded for computing "taxable turnover of purchases" u/s 11(3)(b) of the Act. The Court emphasized the strict interpretation of tax statutes, adhering to the natural construction of words used in the provisions. The definition of "purchase price" is enumerative and exhaustive, limited to the categories enumerated, excluding components not covered. Consequently, the taxable turnover of purchases must be calculated after deducting purchases on which no tax credit was claimed or granted, and the value added tax componen..... .....

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