14 June 2009
VAT is a state subject and is in lieu of the erstwhile state general sales tax levied before VAT took over. CST is levied on inter-state sales, The invoice raised for sale of goods within the boundries of a state will be subject to VAT (the new avtar of General Sales Tax levied in the State) If the sale is outside the state CST will be applicable at the prevailing rate.
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