Applicability of CST

[madhavvan n]

a company located in special eco zone in maharashta when it sells to a domestic company in gujarat will it have to levy cst pls give notification number section/ rule reference

[Ravi Chopra]

It is a movement from one state to another. There is not such exemption under CST. You need to ascertain the effective rate of sales tax (VAT) under Maharashtra VAT for removal of goods from SEZ to DTA area. That would help to decide the issue.

AI Summary

Interstate movement and CST applicability: CST applies to transfers between states; assess originating state's VAT treatment for SEZ removals. Transfers of goods from an SEZ in one state to a purchaser in another state are interstate movements for CST purposes and are not covered by a general CST exemption; determining tax treatment requires examining the originating state's VAT provisions and any notifications governing removals from SEZ to the domestic tariff area to establish the effective rate or special treatment.