CST with out C'Form

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ramesh vadnala (Querist)
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19 January 2008 we are bulk mfrs. and selling our products @4% in APVAT.
Wat is the rate of tax in CST sales to register dealer with out C'form and as well as unregister dealer under which section.. Please

S.Srinivasaraghavan

S.Srinivasaraghavan (Expert)
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20 January 2008 Re produced as below the notification clarifying your query

PRESS INFORMATION BUREAU
GOVERNMENT OF INDIA

CENTRAL SALES TAX (CST) REDUCED TO 3% FROM 1 ST APRIL, 2007

New Delhi: Chaitra 8, 1929
March 29, 2007

The Government of India, Ministry of Finance, Department of Revenue, issued the notification here today, to bring into force the provisions of the Taxation Laws (Amendment) Act, 2007, w.e.f. 1 st April, 2007. Through this Act, the following amendments, inter-alia, have been carried out to the Central Sales Tax Act, 1956 and the Additional Duties of Excise (Goods of Special Importance) Act, 1957:

a) The rate of CST on inter-State sale to registered dealers (against Form-C) shall stand reduced from 4% to 3% or the rate of VAT/ State Sales Tax applicable in the State of the selling dealer, whichever is lower.

b) The rate of CST on inter-State sale other than sale to registered dealers shall be the rate of VAT/ State Sales Tax applicable in the State of the selling dealer.

c) The rate of CST on inter-State sale to Government Departments shall also be the rate of VAT/ State Sales Tax applicable in the State of the selling dealer, indicated at (b) above. The facility of inter-State purchases by Government Departments against Form-D stands withdrawn.

d) Enabling provisions have been made for the States to levy VAT on Tobacco. Tobacco has been dropped from the First Schedule of the Additional Duties of Excise (Goods of Special Importance) Act, 1957 as also from the list of declared goods, to enable States to levy VAT on Tobacco, at rate higher than 4%, without losing their share out of 1% devolution from the Divisible Pool of Central Taxes.

All these amendments as also other provisions of the Act shall be effective from 1 st April, 2007.

BSC/BY/GN-191/2007