Suppose I'm purchasing entity and I am purchasing through a company which has a Warehouse in Surat and Head Office in Mumbai.Now if purchase bill is generated from Mumbai and Goods are sent from Surat then on those goods whether CST is applicable or VAT?
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Purchase from warehouse
Replies (5)
Dear Friend,
TO decide whether a transaction is chargeable to VAT or CST, movement of goods is very Important. According to Section 3(a) of CST Act, CST is applicable when there is movement of goods from one state to another.
Its important to note that the Movement of Goods will decide the changeability & not location of the dealer. So as in your case, even if both dealers are situated in Maharashtra, the transaction is chargeable to CST as goods are moving from Surat (Gujrat) to Mumbai (Maharashtra)
Thank you for your reply Sir, but you haven't understood my question. I am sayiing that the goods that I am to receive are from Warehouse situated at Surat of the company situated at Maharashtra. So if I will receive goods from warehouse situated in Surat, whether VAT will be applicable or CST?
It will be chargeable to CST. As Goods are moving from one state (Gujarat) to Another (Maharashtra). Location of the dealer is not relevant. Even if both the buyer & seller are in Maharashtra, transaction involves interstate movement of goods. Hence it is chargeable to CST
Thank you sir for your prompt reply and in support with your answer can you please give me statutory reference.
I already gave reference in original answer. Section 3(a) of CST Act clearly define what is interstate sales. Just refer it
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