TaxTMI 
TaxTMI 
TaxTMI 
Reduction of rate of tax
AYYAVOO NACHIMUTHU
Sir,If a state government has issued a notification for reduction of rate of tax for a commodity then reduced rate of tax is applicable for CST also.Please clarify.
Notification Must Specify If Tax Rate Reduction Applies to VAT or CST; Central and State Roles Differ A user inquired whether a state government's notification reducing the tax rate for a commodity applies to both VAT and CST. The response clarified that the notification must explicitly state its applicability to VAT or CST. It was noted that changes to CST are managed by the Central Government, while VAT adjustments are handled by the State Government. (AI Summary)