TaxTMI 
TaxTMI 
Goods received by an EOU under the sale in transit transaction, the benefit of CST paid can be claimed as refund. If yes under which Section of the CST ACT.
Benefit of CST
pravinchandra salian
Clarification on CST and VAT: EOU E1 Sales Exempt, No CST Refund for EOUs, VAT Reclaimable on Purchases. A discussion on the benefit of CST for goods received by an Export Oriented Unit (EOU) through a sale in transit transaction. It is clarified that under Section 6(2)(b) of the CST Act, E1 sales are exempt from tax, but CST paid by the manufacturer cannot be claimed as a refund for EOUs, only for sales to Special Economic Zones, as per Section 8(6) of the CST Act, 1956. Additionally, VAT can be applied to goods and services, with businesses able to reclaim VAT paid on purchases. Voluntary VAT registration can enhance a company's market perception. (AI Summary)