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

Interstate sale taxation requires central sales tax when form C provided; intrastate sales attract state value added tax.
Whether VAT or CST applies depends on the nature of the sale: intrastate supplies attract VAT; interstate supplies attract CST where a valid Form C allows the concessional CST rate, while sales without Form C are liable to VAT at the applicable or peak rate. Sales of imported material "as such" may qualify for benefits under the relevant Customs notification.