Sir,
What is the difference between sales tax, VAT, & CST. My employer company is a manufacturer of garments. If we sell the garments then what kind of tax is applicable for us? Please tell me about the rates and taxes, if we sell the garments in Delhi and outside Delhi.
Understanding VAT and CST for Garment Sales: Key Differences and Applicability Explained A participant inquired about the differences between sales tax, VAT, and CST, and their applicability to a garment manufacturing company selling within and outside Delhi. The first response clarified that sales tax is obsolete, with VAT applied within states and CST on interstate sales, ranging from 5% to 14%. The second response explained that VAT is a form of sales tax applied to added value, adopted by most states since 2005. CST is levied on interstate sales at 2% with a C form, or at local rates without it. Tax rates vary by state and can be found on state VAT websites. (AI Summary)