VAT on Sale to Goverment Department

[Ganeshan Kalyani]

Dear Sir,

I would like to discuss on applicability of VAT or CST on sale of goods to Government Department. Say for eg. If Cold drinks are supplied to Indian Armed Forces, whether locally or Interstate sale then whether it is liable to tax under VAT and CST Act.

regards,

ganeshan

AI Summary

Karnataka VAT Act: Standard Tax on Sales to Government Unless Exemptions Apply, 5% on Goods to Military Canteens A user inquired about the applicability of VAT or CST on sales to government departments, using the example of supplying cold drinks to the Indian Armed Forces. It was noted that under the Karnataka VAT Act, government departments dealing in taxable goods must register and remit VAT/CST. Another participant mentioned that standard tax rates apply unless exemptions are specified. A reference to a prior case indicated that a lower tax rate might apply if certain forms are issued, but these forms are no longer valid under current acts. A notification from Karnataka reduced tax to 5% on specific goods sold to military canteens.