about the vat rate of selling raw material

[MEHUL ASHAR]

Respected  Sir,

                            If I Want to sale the raw material on which CST @2% is charged then I have to charge 2% or 5%, as i am charging 5% vat on my finished goods.

[YAGAY andSUN]

Against C form you can sell the rawmaterial @ 2%.  If the buyer is not able to provide the C form, then, you would have to charge CST @ 5%.

AI Summary

CST applicability: charge concessional rate on raw material when buyer furnishes C form; otherwise standard CST applies. When selling raw material inter-state, apply the concessional central sales tax rate if the buyer furnishes a C form; if the buyer does not provide a C form, charge the standard central sales tax rate. Charging VAT on finished goods does not affect CST treatment of raw material sales; the applicable CST rate depends on the buyer's documentary compliance.