Applicability of VAT or CST

[PRADEEP KUMAR]

We have received order from Chennai to deliver goods at Surat, whether we have to charge VAT or CST on said transaction. We are situated at Ahmedabad. We will insert on invoice copy, Conisgnee name with Surat location and buyer's name/billing address will be Chennai location. Pls. guide whether to charge VAT or CST on stated transaction??

AI Summary

Goods Ordered from Chennai to Surat: VAT Applies, Not CST, Due to Movement Within Gujarat; Retail Invoice Advised. A discussion in a forum addresses whether Value Added Tax (VAT) or Central Sales Tax (CST) should be applied to a transaction involving goods ordered from Chennai to be delivered in Surat, with the seller located in Ahmedabad. The consensus is that the movement of goods determines the tax type. Since the goods move within Gujarat, VAT applies, not CST. However, complications arise as the buyer is not registered in Gujarat, raising questions about issuing tax invoices. It is advised that a retail invoice be issued to an unregistered dealer instead of a tax invoice.