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Central sales tax

VAT (Legacy) 738 views 3 replies

I want to know whether the rate of CST for all commodity/goods is 2% or the rates are different for different commodities, expert please help...

Replies (3)

It is 2% for all commodities. 

However, the condition is you have collect the C Form to whom you are selling.

If you do not collect the C Form then you will have to pay the balance tax as if it were sold within the state.

If the party is not in a position ot give you C Form you can charge the rate that is generally charged to the commodity if it were sold inside the state.

Originally posted by : praveen

It is 2% for all commodities. 

However, the condition is you have collect the C Form to whom you are selling.

If you do not collect the C Form then you will have to pay the balance tax as if it were sold within the state.

If the party is not in a position ot give you C Form you can charge the rate that is generally charged to the commodity if it were sold inside the state.


Please provide me the source on the basis of which you are explaining it...
 

Hi Suraj,

 

Rate of CST will be local rate of such goods in the State from where the goods are sold. So if the local rate of any goods is less than 2%, then CST will be such lesser rate and not 2%.

 

Where goods are liable for VAT at the rate higher than 2%, CST would be 2% if the buyer furnishes Form-C declaration.

 

Go through Section 8 of CST Act, 1956 for basis.

 

 


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