01 October 2008
Under the CST Act, the tax is collected at one stage of purchase or sale of goods. Therefore, the burden of the full tax is borne by only one dealer, either the first or the last dealer. However, under the VAT system, the tax burden would be shared by all the dealers from first to last depending upon the value additions done. Then, such tax would be passed upon the final consumers.
04 October 2008
CST is applicable on sales or purchases made in course of inter satte trade & commerce, whereas VAT is applicable on intra state sales or purchases.
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