CST or VAT for our scenario

[Mihir Kamat]

We are a company registered in Kolhapur, Maharashtra. We have some clients based in Pune, Maharashtra who undertake large projects nationally. They raise Purchase Order on us to manufacture components and deliver to their project sites/customers located inter-state. Is VAT or CST applicable to this transaction? The movement of goods is inter-state as directed on the PO. But the invoicing party is located same state.

AI Summary

Company Questions VAT vs. CST for Inter-State Goods Delivery; Section 3(a) CST Act Clarifies CST Applies A company in Kolhapur, Maharashtra, is questioning whether VAT or CST applies to transactions involving manufacturing components for clients in Pune, Maharashtra. Although the invoicing party is in the same state, the goods are delivered inter-state. A consultant clarified that the transaction falls under Section 3(a) of the CST Act, 1956, indicating CST is applicable. The company expressed gratitude for the prompt response.