about charging vat or cst on selling of imported raw material

[MEHUL ASHAR]

Respected Sir,

                        What we have to charge when we want to sell imported raw material, we have to charge 5% vat or 2% cst.

[YAGAY andSUN]

It will depend on the nature of the sale.  Meaning that if the sale is intrastate then you would have to charge VAT as applicable on the goods intended for sales.  If the sale is interstate then against form C, you will have to charge CST @ 2% and without C form either 5% or peak rate of VAT will be applicable.

 

Further, if you are selling imported material as such then you can avail the benefit of Notification No. 102/2007-Customs as amended time to time.

AI Summary

Guidance on Tax for Selling Imported Raw Materials: VAT for Intrastate, CST for Interstate Sales with Form C. A user inquired about whether to charge VAT or CST when selling imported raw materials. The response clarified that the applicable tax depends on the nature of the sale. For intrastate sales, VAT should be charged according to the applicable rate for the goods. For interstate sales, CST at 2% should be charged if supported by Form C; otherwise, either 5% or the peak VAT rate applies. Additionally, if selling imported materials as is, one might benefit from Notification No. 102/2007-Customs, subject to amendments.