Appilicabilty of CST 2%

[Rambabu Dompaka]

Dear Sir,

We are the Manufacturers of AcidandChemicals. Our Products are globally known products for Maintenance and Cleaning Solutions to Machinery, House Holds etc..

Just i need a clarification For, Whether Our products are Eligible to issue for Concessional Rate of tax i.e 2% by getting C Form from the Customer.

Please do the Needful in this regards.

With Regards,

Rambabu.D

[YAGAY and SUN]

Dear Ram,

If your customs is registered under CST Act, 1956 and this solution is mentioned in his registration certificate and it is being used for manufacturing, reselling etc. then it can be sold @ cst 2% against Form C, otherwise not.

Regards

YAGAY and SUN

(Management, Business and Indirect Taxes)

[Rambabu Dompaka]

Thanks alot for your reply Sir.

Can you refer any notification or relevant sec for this.

With Regards,

Rambabu.D

[YAGAY and SUN]

Dear Ram,

Please refer Section 7,8 of the CST Act, 1956 read with Rule 7 to Rule 13 of CST (Registration and Turnover) Rules, 1957 in this regard.

Regards,

YAGAY and SUN

(Management, Business and Indirect Tax Consultants)

[Rambabu Dompaka]

Many thanks for your reply Sir.

With Regards,

Rambabu.D

AI Summary

Concessional CST allowed where purchaser is CST-registered and furnishes Form C and goods are for manufacture or resale.
Sales at the concessional rate are permissible against production of Form C only if the purchaser is registered under the CST Act, the goods or activity are specified in the purchaser's registration certificate, and the goods are for manufacture, resale or other qualifying inter-state use; otherwise the concessional rate is not available. Sections 7 and 8 of the CST Act and Rules 7-13 of the CST (Registration and Turnover) Rules, 1957, are cited as the relevant provisions.