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

VAT on government purchases: sales to government departments are generally taxable and require dealer registration, subject to notifications.
Sales of taxable goods to government departments are generally subject to VAT and CST and selling dealers must be registered; normal tax rates apply unless a specific exemption notification provides otherwise. Concessionary forms historically used for reduced tax treatment are not effective under the successor VAT/CST regime for sales to government, and Karnataka has issued a limited notification granting reduced tax on specified goods sold by Canteen Stores Department or regimental canteens to armed forces members and pensioners.