Tax on Artisans and Craftsmen

[Asked by Guest]

Hi,

If an artisan creates some handicrafts and sells them to a dealer (for resale), is s/he liable for CST(interstate) or VAT(within state)?

In the above case, if the sale is made to the end customer (not for resale) what can be the tax liability?

Thanks

 

AI Summary

Dealer classification under VAT determines artisan registration and tax liability when turnover exceeds the statutory threshold.
Artisan liability depends on classification as a dealer and whether turnover exceeds the statutory registration and taxable-turnover threshold; artisans below the threshold need not charge VAT, sales to dealers for resale are subject to VAT/CST rules, subsequent purchasers must account for tax where prior sellers were exempt and cannot claim input tax credit, and product-level exemptions for handicrafts in some states are separate from turnover-based relief.