TaxTMI 
TaxTMI 
Dear Sir,
My query is why CST is not cenvatable like ED and Service Tax.
Central Sales tax (CST) query
10 Feb 2016 
2 Replies 
1927 Views Asked by
Guest 
Central sales tax non-creditability arises because cross-credit between central and state levies is not permitted under existing tax framework.
The discussion explains that CST is not Cenvatable because allowing Cenvat on CST would defeat the purpose of the CST levy; CST is a central levy though retained by states, while VAT is a state subject, so cross-credit between central and state taxes is legally and administratively unjustifiable. Respondents also observe that concessional treatment on inter-state purchases operates like a de facto credit, and that a unified regime such as GST would change these mechanics. (AI Summary)
The discussion explains that CST is not Cenvatable because allowing Cenvat on CST would defeat the purpose of the CST levy; CST is a central levy though retained by states, while VAT is a state subject, so cross-credit between central and state taxes is legally and administratively unjustifiable. Respondents also observe that concessional treatment on inter-state purchases operates like a de facto credit, and that a unified regime such as GST would change these mechanics. (AI Summary)