Vat or cst applicable?

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

04 January 2012 WE HAVE SUPPLIED MATERIAL AS PER FOLLOWING
(1) CONSIGNOR : Ahmedabad (Gujarat)
(2) Buyer : Outside Gujarat
(3) Consignee : Within the Gujarat

The question is Value added tax applicable or Cst applicable? Which principle applicable - (a) Movement of Goods (b) Title of Goods

MJ Krishnamurthy

MJ Krishnamurthy (Expert)
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04 January 2012 Mr Author,
Movement of goods is important in some cases.Here as the goods do not cross the Gujrat state borders the sale will be within that state only.But, there is an exception to this rule by way of interstate sale by transfer of documents.The buyer staying outside Gujrat can endorse the documents to be delivered to his customer(consignee),while the goods are on the way(transport),even if the customer is in the same state. This is also an interstate(CST) sale.Though the goods do not go out of the state border,but under sec3(b)of CST Act it becomes an interstate sale.
MJK