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.

[Ganeshan Kalyani]

The Notification shall specifically be issued stating whether it is applicable for VAT or CST. Changes in CST is undertaken by Central Gvt. Whereas Vat by State Gvt. Thanks.

AI Summary

Applicability of reduced tax rate depends on whether the notification covers VAT or CST; CST requires central action. A state notification reducing the rate of tax applies to VAT as enacted by the state, while CST changes are undertaken by the central government; the notification must expressly state applicability to CST for it to affect central sales tax.