Query about cst rate of 1%

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Hello friends, please help to guide me through the following doubt: i saw some bills of purchase of certain kind of chemicals from Himachal pradesh on which CST rate of 1% was levied. MY QUERY IS THAT: 1.Why the rate is not 2%? 2.what could be the reasons behind the rate of 1% CST. 3.Is it in the hands of any state to lower the CST rate on the goods sold from its territory or is it due to the rule of LOWER OF LOCAL VAT OR CST that the CST rate here is 1%? Please help.
Replies (5)

THE RATE OF CST FOR THE MANUFACTRING INDUSTRY IS 1% (CONCESSIONAL IN H.P.). 

cst is lower of

1) 2%

or

2) local vat rate

As per CST act the rate of CST to be levied is LOWER of CST Rate or the Local Rate ....

thank u all for ur valuable replies.

all above anwers to ur querry r incorrect..

nw i wil tel u buddy dat what's d rite ans.

 

if u r manufuring concern which is working in H.P. den according to exemption notification published under official gazette(raj patra) of H.P. excise & taxation act, u r liable to pay only 1% CST for interstate sales of manufactured items... means der is concession.

 

but if u r trading entity den u r liable to pay 2% or local vat rate whichever is higher..

 

i hope u r satisfied nd kindly ask as many questions in future from me in future if u like.... ha ha ha :-)

 

ACA Rajeev Aggarwal with ACA Yogesh Dua 

Both are in practice yo!


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