Cst purchase is mandatary or not?????

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kamalesh chatterjee

Account Assistant

27 Points Posted on 26 August 2013

Respected Sir/ madam,

We know that input vat is eligible for get input tax credit as per items listed in vat schedule in west bengal. but cst purchases are not eligible for getting input tax credit. So my question is if we are not able to get any input tax credit against cst purchase then why should we make some purchases from outside of state. is there any restriction of local purchase in west Bengal?? or this can be controlled as per dealer wish to avail ITC??

kindly explain...........................

Regards

kamalesh Chatterjee

Replies (3)

CA vinod

Chartered Accountant

208 Points Posted on 26 August 2013

There is no such mandatory clause for interstate purchases, it is purely your business decision. Some times we need to purchase material from outside the state bcoz of any reasons like...Less cost, good quality, Higher credit period etc..

MJ Krishnamurthy

ACCT(Retd)

5757 Points Posted on 26 August 2013

The cst paid goes to another state. That is the reason for not giving credit that tax paid on interstate purchases. When a local purchase is made once full tax had been paid to local govt on purchases. Hence,on the second transaction of the same goods a reduction is allowed......mjk