GVAT & CST

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Sushma Mevacha (Querist)
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23 May 2011 One of Our Client is "A" engaged in the Hotel Industries.

He has abtained the GST no from Department in the Category of Lumpsum Payment of VAT. Now in this Category they are not eligible to buy the Products from Out of Gujarat and if they do, they loss the benifi of "FORM C" as they are already enjoying benifit under Lumpsum scheme.

Now they want to buy some Fix Assets from Out of Gujarat & they need to get the CST registration.

Now my question is If "A" applies for the CST, can they enjoy the Benifit of Lumpsum Scheme ?

If yes on what base ? And if "No" , so what is the other Option ?

Sanjeev Kumar

Sanjeev Kumar (Expert)
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31 May 2011 there is some conditions for purchase a goods under CST Act with concessional tax benefit are prescribed i.e. cst purchase against form "C", mainly 1) that goods should be liable to pay tax further; 2) capital goods which are used for production of taxable goods etc.
in your case i think Hotel is registered for fooding only & obtained Lumpsum vat payment scheme. definitely u can;t purchase goods under CST@2% with said scheme but check carefully before go for CST registration whether fixed assets what;s going to purchase, full-fill form "C" conditions.