Vat & cst

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

22 November 2014 Hello sir,
I have undertaken a franchise of a solar company from Andhra Pradesh. I do business in Odisha. I paid CST of 5%. Will i get a refund of 3% after producing Form C?

Do i have to add 5% VAT on the selling price?

What other taxes do i have to pay?

VAT on inverter/ups is 5%, and on battery is 13.5%. But if ups and baterry are sold together, will the VAT be 5% on the total?

Querist : Anonymous

Querist : Anonymous (Querist)

02 December 2014 Anyone reply plz.

Asha Kanta Sharma

Asha Kanta Sharma (Expert)
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02 August 2025 Hey! Your queries about VAT & CST in the context of your solar business in Odisha are pretty common. Let me break it down clearly for you:

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### 1. **CST paid at 5% and refund after producing Form C?**

* **CST (Central Sales Tax)** at 5% is charged on interstate sales when Form C is **not** produced.
* If you **produce Form C** (or nowadays, Form C has largely been replaced by e-way bills and GST forms, but assuming this is under pre-GST regime), you pay **CST at concessional 2% (or 0% in some cases)** depending on goods.
* **No direct refund of 3% CST** if you already paid 5%; instead, by submitting Form C before or at the time of sale, you can avoid the higher rate.
* If Form C was not produced and you paid 5%, no automatic refund; you might have to approach tax authorities to claim.

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### 2. **Do you have to add 5% VAT on selling price in Odisha?**

* Yes, since you are **selling in Odisha (intra-state)**, you need to charge **VAT as per Odisha VAT rates** on your sales price.
* If inverter/UPS attracts 5% VAT and battery 13.5%, you charge VAT accordingly.

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### 3. **What other taxes do you have to pay?**

* **VAT** on sales within Odisha (different rates for different products).
* **CST** only if you make interstate sales (selling from Odisha to other states).
* Other local taxes or cess if applicable.
* Since you mentioned pre-GST, make sure you also comply with any other applicable local levies or service taxes.

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### 4. **VAT on inverter/UPS (5%) and battery (13.5%) sold together — how to apply VAT?**

* If sold as **separate items**, VAT rates apply individually (5% on inverter/UPS and 13.5% on battery).
* If sold as a **single composite product or bundle**, taxability depends on whether battery is essential part of UPS or sold separately:

* Usually, if battery is integral and cannot be separately identified, lower rate (5%) may apply on entire bundle.
* If battery and UPS can be separately identified and sold as distinct products, VAT rates apply separately.
* State VAT rules and valuation principles will guide the exact treatment.

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### Summary Table

| Query | Answer |
| ----------------------------------------- | ----------------------------------------------------------------- |
| CST refund after paying 5% without Form C | No direct refund; submit Form C to pay concessional CST next time |
| VAT charge on sales in Odisha | Yes, charge VAT at applicable rates (5% or 13.5%) |
| Other taxes | VAT, CST (for interstate sales), any local levies |
| VAT on UPS + battery bundle | Depends on bundle nature; usually lower rate if integral |

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If you want, I can help you draft a checklist for your tax compliances or explain Form C filing procedure.

Want me to?

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