go to www.pib and you can find the press release of govt of india.... and there you can find that the cst has been reduced to 2 % wef june 1, 2008.
NOTIFICATION OF CST 3% TO 2%
Page no : 8
(Guest)
In press release at www.pib.nic.in, there is only a reference of notification. Sir, Can you please tell us the notification no.
mallya
(industry)
(76 Points)
Replied 31 May 2008
notification No. 1 / 2008 - CST - F. No.28/11/2007 - ST dt 30.05.2008
signed by R G Chhabra,
(under secretary to the govt of india.)
Ajay Kumar Chaudhary
(Business)
(24 Points)
Replied 31 May 2008
CA Ajay Aggarwal
(Chartered Accountant)
(20 Points)
Replied 31 May 2008
Has the notification been withdrawn? I got this from some site. pl advise.
Government withdraws statement on CST cut to 2 per cent news 30 May 2008
The government has withdrawn a statement about cut in central sales tax rate on inter-state sales from three per cent to two per cent, effective 1 June. The statement was withdrawn shortly after release.
"The press release on Central Sales Tax reduced to two per cent from June 1, 2008 is withdrawn. A revised press release would be issued shortly," an official communique said.
The finance ministry notification came after much bickering with states and the differences with the states persisted on how to compensate them for revenue loss of about Rs13,000 crore in 2008-09.
CST was cut to three per cent on 1 April 2007 from four per cent and it was to be reduced to two per cent on 1 April 2008, before being phased out by March 2010.
However, an agreement on reduction to two per cent got delayed after states refused to increase value added tax (VAT) rate from four per cent to five per cent and bring textiles under its ambit.
"The empowered committee of state finance ministers will make every effort to prevail upon the state governments to impose VAT on textiles as also to increase the general VAT rate from four per cent to five per cent within the financial year 2008-09 as per agreement reached earlier," finance ministry had said in a statement acknowledging the differences with states on compensation.
While states will get some revenue from certain services, VAT on tobacco and removal of Form D, there was a dispute how the remaining Rs9,600 crore will be paid to states.
Finance ministry sources said states are refusing to raise VAT from four per cent to five per cent sighting inflation and assembly elections. States are also demanding cash compensation for Rs9,600 crore from the central government.
With no immediate solution in sight, the central government decided to withdraw the notification. The empowered committee, which will meet in the last week of June, is expected to further discuss the issue.
JOHN BOSCO NIRMAL RAJ
(Sr. Manager- Taxation in Shriram Group)
(32 Points)
Replied 31 May 2008
In My opinion it is 2% to be charges for Cst from 01.04.2008 alike Cenvat which is implemented without notification
JOHN BOSCO NIRMAL RAJ
(Sr. Manager- Taxation in Shriram Group)
(32 Points)
Replied 31 May 2008
In My opinion it is 2% to be charges for Cst from 01.04.2008 alike Cenvat which is implemented without notification
Amit Agarwal
(General Manager - Accounts)
(42 Points)
Replied 31 May 2008
NOTIFICATION No. 1/2008-CST
New Delhi, Dated: May 30, 2008
S.O…(E) In exercise of the powers conferred by the proviso to sub-section (1) of section (8) of the Central Sales Tax Act, 1956 (74 of 1956), the Central Government hereby reduces the rate of tax as specified in sub-section (1) of section 8 of the said Act from three per cent to two per cent with effect from 1st June, 2008.
[No. 1/2008-CST-F.No.28/1 1/2007-ST]
(R.G. Chhabra)
Under Secretary to Government of India
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