Vat and cst

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Querist : Anonymous

Querist : Anonymous (Querist)

09 October 2011 Hi
Can any one help me my doubt. I am working in a trading company in kerala. Our purchase from different states. Here in kerala Vat is applicable. My query is CST is applicable or not. OR CST is include in vat kindly tell me. Thanks

Hitender Gaur

Hitender Gaur (Expert)
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09 October 2011 CST is applicable only when your business or trading crossed the limits of kerala. If you sales/purchase out of kerla you need to get CST no. also along with Local VAT registration.

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Querist : Anonymous

Querist : Anonymous (Querist)

10 October 2011 we have VAT reg No and CST Regn No. But my question is separate return will be file for VAT & CST. OR VAT is including the CST also.
Thank you.

Aashok Kumar Sharma

Aashok Kumar Sharma (Expert)
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02 August 2025 Great question! Here’s a simple breakdown for your VAT and CST concerns in Kerala:

### 1. **What is VAT and CST?**

* **VAT (Value Added Tax):** State-level tax applicable on intra-state (within Kerala) sales and purchases.
* **CST (Central Sales Tax):** Applicable on interstate sales (selling goods from Kerala to other states).

### 2. **Do you need separate registrations?**

* Yes, you **need both VAT registration and CST registration** if you do business inside Kerala and also sell goods to other states.
* VAT registration covers local sales inside Kerala.
* CST registration is for interstate sales.

### 3. **Do you file separate returns for VAT and CST?**

* Yes, **separate returns are filed for VAT and CST**.
* VAT returns are filed with the Kerala Commercial Taxes Department.
* CST returns are also filed with the state where you are registered (Kerala in your case), but CST follows Central Government rules.

### 4. **Is CST included in VAT?**

* No, CST is **not included in VAT**. They are separate taxes.
* VAT applies only within Kerala.
* CST applies only when goods move from Kerala to another state.

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### Summary:

| Tax Type | Applicable On | Registration Required | Returns Filed Separately? |
| -------- | -------------------------- | --------------------- | ------------------------- |
| VAT | Intra-state sales (Kerala) | Yes | Yes |
| CST | Interstate sales | Yes | Yes |

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If your company is purchasing from other states and selling within Kerala, VAT applies on local sales, and CST applies on interstate sales.

Let me know if you want details on how to file these returns or the forms involved!

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