Vat or CST charge ?

[Asked by Guest]

i want to send the material to chattisgarh but the buyer is in mumbai.

my question is shall i charge cst or VAT 12.5%, secondly the chattisgarh party doesnot have cst registration.

pls explain.

[Ganeshan Kalyani]

Sir, the movement of goods is important to determine the applicability of tax. Secondly to do interstate transaction CST registration is mandatory. Thanks.

AI Summary

Interstate tax rule: CST registration is required and tax applicability depends on the movement of goods.
Applicability of VAT or CST depends on the physical movement of goods across state lines; for interstate sales CST registration is mandatory, and the buyer's lack of such registration is relevant to compliance.