Cst doubt

CST is applicable on sales from one state to another state. Present rate of CST is 2% if sold against C Form otherwise CST equivalant to effective VAT rate will be levied.

if you are purchasing goods from outside of state then CST registration us Required.

CST Rates are Local Vat Rate but if Purchaser Ready to Give Form C then Only 2 % CST Will Charged by Seller.

Sir what does "sold against C form mean" ??

'Sold against C Form' means the purchaser is issued C Form towards the goods sold by you..

Mr.Tony Jahn

CST means Central Sales Tax levied by Central Government. If any  purchase of materials/goods taken place between two states, it is called as inter -state sales. The flow of the material is from one state to another state, in such cases instead of charging Vat, CST will be levied on such sale. Central government under CST Rules gives exemption rate of CST @ 2% on submission of C form. suppose CST applicable rate on such product is 12.5% or 5%,if the buyer of the product is ready to submit a C form, then rate will be charged at only 2%. Form C means declaration of interstate sale and claim to get exempted rate of CST. If Form C was not submitted by buyer, then he has to pay the actual rate of CST on the said material   

C Form is Tax Availing Certificate which is Issued by Purchaser to Seller of Another State...........

Against C Form only 2 % CST is Charged

Movement from one state to another:In above case when goods are given to carrier or transporter for transportation .the movement of goods starts at the time of delivery to carrier and terminated at the time when delivery is taken back from such transporter /carrier.

As per point two above CST is applicable if sale is done while goods movement from one state to another state.Its called E-1 transaction or sale in transit.

suppose: X situated in Delhi purchased goods from Y in Punjab .Y booked the material on transport and send GR/RR(goods receipt note issued by transporter) to X. X instead of receiving material from transport himself sold the material to Z in Delhi (same state) by endorsing RR/GR in the name of Z.  Z takes the delivery from the transporter .

In this case sale from Y to X is covered under CST and X to Z is also covered Under CST as sale in transit.

To complete the transaction X will issue C form to Y ,

Y will issue E-1 form to X

Z will issue C form to X

In the above case even X & Z both are situated in Delhi but the sale transaction is covered under "sale in transit" clause of CST act so CST will be applicable and vat is not be charged.

CST is applicable only if goods movement is from one state to other state .If goods movement is started from one state and ends in same state then CST will not be applicable.

thanks for replying ramesh.

But I am not selling to anyone, I am sending it to my own project site.. In this case what shud be done?

Why does the govt give a concession in the tax rate on a mere submission of C form  ??