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Confused about cst and vat. help!

Sambit Patel (Director) (180 Points)

27 July 2014

Hi, we are an online store who started last month only and we are getting the Tin Number, VAT registration done this month.

We are based in Orissa. 98% of our orders are shipped outside orissa to other states.

Only 2% orders are of orissa customers.

So, what do we charge them as extra % in the bill ?

For example VAT in Orissa is 13.5%.

I dont know about CST.

For the orders outside Orissa, do we need to add VAT or CST ?

Or both ?

Im confused about that and what is thr CST for orissa ?

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10 Replies

Dev (Article Trainee.) (608 Points)
Replied 27 July 2014

Selling within state will attract vat.. And if selling outside state cst will be levied..

Sambit Patel (Director) (180 Points)
Replied 27 July 2014

Originally posted by : Dev
	Selling within state will attract vat.. And if selling outside state cst will be levied..

So what is the CST value ?

Dev (Article Trainee.) (608 Points)
Replied 27 July 2014

Cst= (Cost+excise)*rate of cst

Sambit Patel (Director) (180 Points)
Replied 27 July 2014

Originally posted by : Dev
	Cst= (Cost+excise)*rate of cst

I mean, so how much % shall we add to the invoice for them ? Is it same for all states or different ? And this CST we need to deposit to the goverment at the end of every month, corect ?

Harshal Fifadra (Chartered Accountant) (1489 Points)
Replied 27 July 2014

CST rate would be 2 % if you are getting the C FORM for selling goods outside the state ...If you are not getting C FORM then the rate applicable would be the rate had the goods been sold within orissa ...

Sambit Patel (Director) (180 Points)
Replied 27 July 2014

Its an online store, we simply import the products from USA and sell it online from our office in Orissa.

So, what to do now ? What is C Form ? Do we need to attach a C Form with each order email ?

Im fine with the 2% CST, and paying that in the end of the month to the VAT office against our TIN number. But what is C form and how to get it ?

Dev (Article Trainee.) (608 Points)
Replied 27 July 2014

If u r selling outside state to registered dealer and and rate of cst is 2% or below 2%.. Then u should ask C Form from purchaser. And produce the same before sales tax authority.. But if selling outside state to unregistered dealer or to final consumer then apply vat rate prevalent in ur state. And dont ask for c form..

Sambit Patel (Director) (180 Points)
Replied 27 July 2014

Originally posted by : Dev
	If u r selling outside state to registered dealer and and rate of cst is 2% or below 2%.. Then u should ask C Form from purchaser. And produce the same before sales tax authority.. But if selling outside state to unregistered dealer or to final consumer then apply vat rate prevalent in ur state. And dont ask for c form..

We will be selling to end customers only. No dealers!

So, we have to charge it as VAT ? Not CST ? So, CST is only for out of state dealer sales ? No end customers ? So, lets say, our orissa state VAT is 13.5%, so if we sell an item to a mumbai customer, then we have to charge him 13.5% on invoice ??

Dev (Article Trainee.) (608 Points)
Replied 27 July 2014

How can end customer give u C form???? may Charge Cst at the rate prevalent in ur state on selling product.also check for any exemption or rebate on ur selling product under act.

Sambit Patel (Director) (180 Points)
Replied 27 July 2014

Originally posted by : Dev
	How can end customer give u C form???? may Charge Cst at the rate prevalent in ur state on selling product.also check for any exemption or rebate on ur selling product under act.

Yes, thats why. So, no question of C form. You said, if selling to end customers, then no CST. only VAT ? I guess, its wrong. Correct me, if Im wrong. And do we have any exemption on auto parts and accessories like jackets, gloves, helmets ?