Central Sales tax (CST) query

[Guest]

Dear Sir,

My query is why CST is not cenvatable like ED and Service Tax.

AI Summary

Discussion on Why Central Sales Tax Isn't Eligible for CENVAT Credit; GST May Resolve Issues A participant asked why Central Sales Tax (CST) is not eligible for CENVAT credit like Excise Duty and Service Tax. One respondent explained that allowing CENVAT credit on CST would undermine its purpose, but the implementation of GST might address such issues. Another respondent noted that when goods are purchased within a state, full VAT is paid, but when purchased from another state, only 2% CST is paid, which acts as a concession similar to CENVAT. They highlighted that VAT is a state tax while CST is a central levy, making cross-crediting unjustifiable.