Trade Cir. No.14 T of 2008
Sub: Rate of tax under Central Sales Tax Act, 1956 from 1.4.2008.
In his speech on the Budget Estimates the Hon’ ble Union Finance Minister has declared that the rate of Central Sales Tax will be reduced from 3% to 2% from w.e.f. 1st April 2008. However, the Notification regarding reducing the rate of tax from 3% to 2% has not been issued so far by the Union Government. Therefore, rate of tax under Central Sales Tax continues to be 3%. It is hereby made clear that dealers should continue to collect and pay Central Sales Tax @ 3% on their inter-state sales from 1st April 2008. Any change in the applicable rate will be brought to the notice of the trade.
2. This circular cannot be made use of for legal interpretation of provisions of law as it is clarificatory in nature. If any member of the trade has any doubt, he may refer the matter to this office for further clarification.
3. You are requested to bring the contents of this circular to the notice of the members of your association.
Commissioner of Sales Tax,
No.CST-1007/1/Adm-3/Adm-5 Mumbai, Dt.15.04.2008