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Posted on 26 March 2008
CST stands for Central Sales Tax. It is tax levied on the sale of goods to another states. When a dealer in the states sold goods to another dealer in other states then he will charge CST on the sales value of goods. Current rate of CST is 3% and it will charged @ 2% from 1st april, 2008.
Rightnow it is not possible to claim Input Tax credit for Central Sales Tax paid on Interstate purchases.