Cst query

There are two rates for CST

1. CST - 2% for C form

2. CST @ VAT rate if C form is not submitted

Here he can purchase goods goods at VAT rate only and take the invoice on punjab address so he dont face any problem trasferring the goods to punjab

You said he is not sales tax registration then he can sell without VAT

BUT one problem he can purchase from out of state only if he had CST registration - I am thinking this and I dont know exactly and I will confirm you after confirming myself.

Thanks Mr. Prasad for your reply.

I referred CST Act and it seems:

1. X is under no obligation to get himself registered under CST Act since he is not making inter-state sales and made only inter-state purchase and compulsory registration is required only in case you make inter-state sale. Although it would be advantageous for X to get himself registered as then he can purchase goods from Delhi at concessional rate of 2% or VAT rate applicable to computers in Delhi, whichever is lower, provided he furnishes form C.

Now its clear that X is unregistered dealer and thus cannot issue Form C.

2. Seller in Delhi has made sale to unregistered dealer. Hence he is required to charge X CST @ 10% or VAT rate applicable to computers in Delhi, whichever is higher. Section 8(2)(b). But still the confusion is whether this is inter-state sale at all in first place as seller didnt transport the goods. At the time of sale, X was under no obligation to take the goods back to Punjab. He did this on his own by hiring a transporter. If we consider this, then this is a local sale within Delhi attracting only VAT.

3. I am not sure whether X after taking goods back to Punjab can sell it without collecting PVAT.

Sir, please advise.

Thanks