Cst/gst

This query is : Open

Querist : Anonymous

Querist : Anonymous (Querist)

04 April 2012 We are going to start business and in that we are going to purchase raw materials and will make product after processing the materials.

The finished product we are going to sell end users (company or organization).
So what process we have to follow for obtaining the CST/GST number.

We are planning to start business in Gujarat and we are going to buy/sell the raw materials or finished product from any part of India.

Could you please let me know what other requires other than CST/GTS or any other process we have to follow or not.

We really appreciate your advice.

C A S.S.Agarwal, M.Com.,LL.B,

C A S.S.Agarwal, M.Com.,LL.B, (Expert)
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07 April 2012 Better you engage a C.A. or Sales Tax Practitioner for your matter.

In short if you are purchasing raw material outside your state then you are covered under CST and you have to pay it as a registered dealer if you are registered under CST Act otherwise you have to pay the same as a unregistered dealer. This CST is not available for set off at the time of purchase but when you export your finished goods to other states then you have to charge CST in the similar manner as in case of raw-material and at that point of time you can adjust paid with collected.

If you buy and sale within your state then you are covered under VAT which is adjustable provided you have transacted with registered dealer.

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Querist : Anonymous

Querist : Anonymous (Querist)

07 April 2012 Many thanks Mr Agrawal for your advice.

Just I wanted to know VAT and CST both the number are different and what are costs involving to procurement of those (approximately).

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