Dear Members,
Please clarify my query regarding VAT rates in various situations as i was not able to find the answer to my question although i looked up many articles on the issue. From what i gathered, the rates are as follows in various situations:
Nature of Goods | Sale to registered dealer against Form C | Sale in any other case |
Declared Goods | 2% or State Sales Tax (or VAT), whichever is lower | Two times the rate of tax applicable to the sale or purchase of such goods in the appropriate state. |
Other Goods | 2% or State Sales Tax (or VAT), whichever is lower | 10% or State Sales Tax (or VAT), whichever is lower. |
Please correct me if i am wrong. Also has the facility of inter state purchases by government against Form D been abolished?
Looking for a quick response please also provide link to relevant circulars giving details of rates of CST in various situations.
Thanking You.