Why we have to pay cst

This query is : Resolved

Eswar Reddy S (Querist)
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20 December 2013 Dear Experts , from purchaser point of view Is there any provision to take input credit of Cst . Why we have to pay CST as we are not getting the benifit of credit ? Shall I claim CST input credit against Cst collected?

CS,CA F,Numrologi TusharSampat

CS,CA F,Numrologi TusharSampat (Expert)
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20 December 2013 yes it is allowed.

C.A. Mayur J. Raiyani

C.A. Mayur J. Raiyani (Expert)
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20 December 2013 (1) Your q is very conceptual. First of al we are not paying any tax for our benefit, it is for the benefit of country. See VAT and CST are collected by state and central govt. respectively. Based on tax collection (whole tax collection, not only CST) budget allocation is made. Based on this, central govt. allocates money to state govt. for well being of the state. If you purchase goods on which cst is payable, then CST goes to central govt., so credit of the same is not given by state govt. Now indirect tax is tax on final consumer. Hence if you purchase good inter state then it will be considered as you r final consumer so CST credit is also not given by cent. govt.also.(2) CST paid cannot be adjusted against CST collected. So std. rule is that "CST once paid, it becomes your cost".However, issues was raised to give credit of the same earlier. But it now not more.

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