VAT treatment

Dear Vijay,

If you are buying material from outside Karnataka, your supplier will charge you only 2% CST against form 'C', if you have VAT/CST registration. Otherwise Tax can be either 4% or 12.5%. 

But ensure that  all the material you buy interstate for your project are included in your CST certificate, so that you can issue form 'C' later.

I am not sure if  you can benefit from the  Local VAT credit for your project purchase.