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.

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.