CST ON PACKING CHARGES

[Hetal Patel]

Are Excise & CST applicable on Packing Charges?

[YAGAY and SUN]

Yes.  Excise and CST applicable on Packing Charges.

[Hetal Patel]

Dear Pradip,

 

Thanks for your valuable advice.

Can you pls suggest any clause form CST Low to provide as proof to our customer.

Our customer do not agree with this that CST will be applicable on packing charges.

 

Thanks and Regards

[YAGAY and SUN]

Please check the definition of Sale under Section 2(g) and Sale Price under Section 2(h) of the CST Act

AI Summary

Applicability of central sales tax and excise on packing charges confirmed as part of sale consideration.
Excise duty and Central Sales Tax apply to packing charges when those charges constitute part of the consideration for the transfer of goods, because packing charges fall within the statutory concepts of sale and sale price; parties should examine the statutory definitions of sale and sale price to determine inclusion.