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Clarification on VAT and CST

Hari (student) (119 Points)

29 November 2016

Sir, I have some confusion on Vat & CST inter-state and intrastate meanings. 1) Mr. A is AP purchased good from another state so vat & cst is chargable or not? 2) Mr. A is AP purchased goods in same state and sold out in same state so which vat & cst both chargable or not? 3) Mr. A is AP purchased goods in same state and sold out in another state so vat & cst is chargable or not?

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3 Replies

Abhishek (Student CA IPC / IPCC) (143 Points)
Replied 30 November 2016

if purchased from other state the

Abhishek (Student CA IPC / IPCC) (143 Points)
Replied 30 November 2016

of purchased from other state then CST will b charged by seller n I'll get added to purchase price.
if purchased from same state u can claim VAT input
of u sell goods to other state then ur suppose to charge CST

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saravanan (Accountant) (30 Points)
Replied 04 December 2016

CST meaning Central Sales Tax.

Interstate means goods purchase from one state to another state. when you purchase a goods in another state CST will be charged 2% or 5% or 14.5%. if you provide C form for that purchase. you will be charged @ 2% or local tax will be charged in the name CST.

If you purchase goods from one state and sell in the same state VAT will be charged and collected @ 14.5% or 5%. CST will not applicable.

You can open a branch in the same state. so local tax on goods will be applicable.