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CST 2% W.E.F. 1st JULY INSTEAD OF 1st JUNE?

sunil (333 Points)

31 May 2008

It has been informed that government has withdraw the effective date of CST 2% from 1.6.2008.Fresh press release for effective date from 1.7.2008 will be release soon? Can anyboby confirm this with notification?

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42 Replies

Pankaj Verma (Asst. Manager Accounts) (20 Points)
Replied 02 June 2008

Long awaited CST rate Notification has been issued yesterday ,according to which CST rates Has been Reduced To 2% w.e.f 01.06.2008. Full Notification text Has been given below

"On the basis of the discussions between the Empowered Committee (EC) of State Finance Ministers and the Union Finance Minister regarding the compensation package, the Government of India, Ministry of Finance, Department of Revenue has issued a notification on 30th May, 2008 to bring into effect from 1st June, 2008 the new reduced rate of CST of 2 per cent on inter-State sales of goods. The notification of new CST rate of 2 per cent in place of earlier 3 per cent is in accordance with the announcement made by the Union Finance Minister in his budget speech in Parliament in February 2008 that the rate of Central Sales Tax would be reduced.

The rate of CST on inter-State sale of goods to registered dealers (against Form-C) shall now be the lower of 2 per cent and the rate of VAT or State Sales Tax applicable. This reduction forms a part of the roadmap for phasing out CST completely by 31st March, 2010 in preparation of introducing Goods & Services Tax (GST), the roadmap for which is being worked out by the EC of State Finance Ministers together with the Union Finance Ministry.

The Central Government and the Empowered Committee of State Finance Ministers have further agreed that the compensation for revenue loss to the States in any year arising from the lowering of CST will be limited to the proportionate loss based on the actual collection of CST in the relevant year."

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Venkatesh (Executive Accounts) (20 Points)
Replied 03 June 2008

now CST 2% against "C" Form, what about without "C" Form

for readymade garments

(Guest)

Sir,

Please confirm me about CST rate against C Form . at this time Electric Tools VAT Rate is 4% & CST against C form 3% . so please confirm me CST Rate against C form & without form. and which Amount of CST Sale requir Road Permit also

Thanks

S.K Chhoker

Sathishkumar (Proprietor) (67 Points)
Replied 06 June 2008

The without Form C Rate of VAT is 4%, that is in which goods rate of local state. But the respective goods value input tax disallowed. Therefore the input tax will not allowed in without Form C sales.