Hello, I am new to Indian taxes. I am understanding the state VAT fairly well, however it is the CST that I am struggling with. The CST is for interstate sales, correct? The rate appears to be 2% when selling to registered dealers, correct?
The part that I am not understanding is the correlation between the VAT and CST for sales to unregistered persons. Does the CST basically mirror the state VAT? Are the rates always the same? If a state's reduced rate changes for VAT, does it automatically change for CST? If a state has an Additional Tax for VAT, is there also an Additional Tax or CST? I have read many Notifications detailing changes in VAT rates, but they never mention the CST.
I would very much appreciate anyone who can write a few quick sentences explaining the generalities of the CST.
Thanks so much!!
CAclubindia
