intrastate sales under CST

[K Balasubramanian]

Our Tax Authorities levy 5% when sold within Tamilnadu and 14.50% (Without C Form) when sold to other state. Is this treatment correct?. What is the relevant Section/Rule/Notification please

[Ganeshan Kalyani]

If the product is taxable @5% when sold within the State, the tax rate in absence of Form C in case of interstate sale, will be 5% only.

[YAGAY and SUN]

Under VAT Regime, the CST Rates were governed by VAT Rates as applicable on Goods intended for sales.

AI Summary

Intrastate tax rate applied to interstate sales without C Form when CST follows VAT rates. The discussion advises that when a product is taxable at the in state VAT rate, an interstate sale made without production of Form C is liable to the same in state rate because CST rates were governed by the VAT rates applicable to the goods; the replies state this principle but do not cite a specific statutory provision.