Wednesday, December 28, 2011

CST RATE WITH / WITHOUT C FORM D FORM


on Wednesday, December 28, 2011

  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 The facility of inter-State purchases by Government Departments against Form-D stands withdrawn.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.
Please comment.
Amendment In this regard in full may be downlaoded from here

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  1. it is a good clarification without any ambiguity as normally done by other experts.

    Ca s. gupta

    ReplyDelete
  2. i like all clarification is very good .every day

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  3. this explanation is very simple to understand. fantastic.

    ReplyDelete
  4. Thanks for your essay explanation

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  5. hello
    Can C form be used for reduced tax rate if the buyer produces C form whereas the seller is not a registered Interstate dealer.

    ReplyDelete
    Replies
    1. C form can be used only if both dealers are registered dealers

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  6. for a tot dealer what will be the cst tax if goods are bought from other states will he be eligible to obtain c form.

    ReplyDelete
    Replies
    1. TOT dealer is not allowed to purchase goods from outside state

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  7. What are the commodities which come under 2% in cst

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  8. pl inform cst rate on thermoware and vaccum flask party not giving form c

    ReplyDelete
    Replies
    1. Vat rate of Selling State on such goods

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  9. what will be tax rate for the buyer when he wants to resale when the material hasbeen purchased from outside against cst with c form

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  10. how many years cst input carry forward

    ReplyDelete