Vat on petrol pump licence sale

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

05 December 2013 please clarify the provision on petrol pump licence sale as well as export-import licence sale under Rajasthan vat act

MJ Krishnamurthy

MJ Krishnamurthy (Expert)
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05 December 2013 Sale of all kinds of intangible assets,like export-import licence,liquor licence,petrol pump licence etc are liable for 5% vat in Rajastan.....mjk

Querist : Anonymous

Querist : Anonymous (Querist)

07 December 2013 Sir, If license sale to Out of Rajasthan i.e. CST Sale than what is Tax rate

MJ Krishnamurthy

MJ Krishnamurthy (Expert)
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07 December 2013 Mostly,a buyer can not issue a C form for this purchase. Then it is the same rate i.e.5%.If he can issue a C form it will be 2%......mjk

Querist : Anonymous

Querist : Anonymous (Querist)

07 December 2013 Sir, Our client is a Exporter and he sale Import-Export licence sale out of Rajasthan against C-Form and he pay CST @ .5% on this sale.
Please clerify that he is doing right or not

Aashok Kumar Sharma

Aashok Kumar Sharma (Expert)
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02 August 2025 Here's a summary regarding **VAT on petrol pump license sale and export-import license sale under Rajasthan VAT Act:**

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### 1. **Sale of Petrol Pump License & Export-Import License in Rajasthan**

* These licenses are considered **intangible assets**.
* As per Rajasthan VAT Act, the **sale of such intangible assets is subject to VAT at 5%**.

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### 2. **Sale Outside Rajasthan (Interstate Sale) — CST Applicability**

* When such licenses are sold **outside Rajasthan**, it is considered an **interstate sale** and governed by **CST** (Central Sales Tax).

* **Tax rates under CST:**

* If the buyer **cannot issue C-Form**, the tax rate applicable is **5%** (same as local VAT).
* If the buyer **can issue a C-Form**, CST is applicable at **2%** ( concessional CST rate).

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### 3. **On Export-Import License sale with C-Form**

* Normally, for interstate sales against C-Form, CST at concessional rate (2%) applies.
* However, your client is paying CST @ 0.5% on export-import license sale outside Rajasthan.
* This appears to be **incorrect** unless a special notification or exemption exists.
* Standard practice: CST on license sale is 2% against C-Form.

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### **Recommendations:**

* Verify if any **special notifications or circulars** issued by Rajasthan VAT department allow 0.5% CST on export-import license sale.
* If no special provisions exist, the client should pay **CST @ 2%** on interstate sale against C-Form.
* If buyer cannot issue C-Form, the rate is **5%**.

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If you want, I can help find the exact Rajasthan VAT provisions or official circulars related to this. Would you like that?

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