Basisi of deciding whether CST/VAT has to be calculated

I  am registered dealer in AP . I am making a sale to a Customer whose Invoice address is AP but delivery address is Delhi . Will CST be calculated . I reckon  the deciding factor for  deciding whether CST / VAT is the movement of goods . If Delivery address is a state which is different from the state from which the movement of goods commences then it is a interstate sale and CST will be calculated . This has nothing to do with the Invoice address state

Another scenario can be taken wherein a registered dealer in AP is making movement of goods to a Customer in Delhi  but the Invoice for the same is sent to Customers AP address . In this scenario only VAT AP will be calculated since there is only an Intrastate movement of goods 

The CST Act  says that : 

A sale or purchase of goods shall be deemed to take place in the course of

inter-State trade or commerce if the sale or purchase-

(a) occasions the movement of goods from one State to another; or

(b) is effected by a transfer of documents of title to the goods during their

movement from one State to another.

 

Please guide me

 

Replies (1)

Dear Sir,

 

I am not able to understand the difference between the two scenarious.  If the goods are being moved from one State to another, CST is applicable irrespective of the address of the buyer mentioned in the invoice.

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