I want to know whether the rate of CST for all commodity/goods is 2% or the rates are different for different commodities, expert please help...
CA Suraj Prasad Shaw (Chartered Accountant) (504 Points)
22 December 2011I want to know whether the rate of CST for all commodity/goods is 2% or the rates are different for different commodities, expert please help...
praveen
(Chartered Accountant)
(6971 Points)
Replied 22 December 2011
It is 2% for all commodities.
However, the condition is you have collect the C Form to whom you are selling.
If you do not collect the C Form then you will have to pay the balance tax as if it were sold within the state.
If the party is not in a position ot give you C Form you can charge the rate that is generally charged to the commodity if it were sold inside the state.
CA Suraj Prasad Shaw
(Chartered Accountant)
(504 Points)
Replied 22 December 2011
| Originally posted by : praveen | ||
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It is 2% for all commodities. However, the condition is you have collect the C Form to whom you are selling. If you do not collect the C Form then you will have to pay the balance tax as if it were sold within the state. If the party is not in a position ot give you C Form you can charge the rate that is generally charged to the commodity if it were sold inside the state. |
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Please provide me the source on the basis of which you are explaining it...
RAJU
(LEARNER)
(1089 Points)
Replied 22 December 2011
Hi Suraj,
Rate of CST will be local rate of such goods in the State from where the goods are sold. So if the local rate of any goods is less than 2%, then CST will be such lesser rate and not 2%.
Where goods are liable for VAT at the rate higher than 2%, CST would be 2% if the buyer furnishes Form-C declaration.
Go through Section 8 of CST Act, 1956 for basis.
Analysis of 20 GST Notices (including 2 Appeals) and Practise on Drafting(with recording)
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