TaxTMI 
TaxTMI 
A manufacturing unit in Tami Nadu raised a invoices on Karnataka buyer and ship to goods to another SEZ unit within Tamil Nadu. In this scenario, this sale is a CST sale or local sale with in Tamil nadu. Please reply.
Bill to Karnataka shipto Tamilnadu by a unit in Tamil nadu
18 Oct 2011 
5 Replies 
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Intrastate sale: billing to another state doesn't attract CST; local VAT applies and SEZ supply is VAT exempt.
Sale billed to an out of state buyer but shipped and delivered within Tamil Nadu is an intrastate sale; tax liability follows movement and place of delivery, not the billing address. Therefore CST does not apply, local Tamil Nadu VAT governs the transaction, and supply to an SEZ unit in Tamil Nadu is exempt from local VAT. (AI Summary)
Sale billed to an out of state buyer but shipped and delivered within Tamil Nadu is an intrastate sale; tax liability follows movement and place of delivery, not the billing address. Therefore CST does not apply, local Tamil Nadu VAT governs the transaction, and supply to an SEZ unit in Tamil Nadu is exempt from local VAT. (AI Summary)