1. What is the percentage of CST chargeable for the sales with C-Form and without C-form.2. What is the percentage of CST chargeable for the sale of goods

to Government undertaking companies e.g NAL, R&DE etc

Please clarify these things.Srinivas Bhat

A Bill namely, the Taxation Laws (Amendment Act, 2007 (Bill No. 13/C of 2007) had been introduced & passed in Lok Sabha in order to further amend the Central Sales Tax Act, 1956.and amendments done by this bill are applicable from 01.04.2007.

The net main effect of the amendments is as follows:-

1. The rate of CST on inter-State sale to registered dealers (against Form-C) shall stand reduced from 4% to 3% or the rate of VAT applicable in the State of the selling dealer, whichever is lower.(Present rate of CST Is 2 %)

2. The rate of CST on inter-State sale other than sale to registered dealers shall be the rate of VAT applicable in the State of the selling dealer.

3. The rate of CST on inter-State sale to Government Departments shall also be the rate of VAT applicable in the State of the selling dealer, indicated at (b) above. The facility of inter-State purchases by Government Departments against Form-D stands withdrawn.

so after these amendments ,tax rates in various possible situation has been explained in the table given below

Now point wise answer to your queries are given here under.

1. Sale with C-form rate of CST or Vat rate for that good of seller's  state,  which ever is less will be applicable .In case of sale without form C ,Vat rate of seller's state is applicable.

2. Sale of Govt Department is now treated like a unregistered dealer so Vat rate of the seller's state is applicable in sale to Govt Departments.

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