CST rate without 'C' Form

[Guest]

Query for CST: With reference to reduction on CST by 3%, against C Form; If interstate sales without C Form, than what is the CST Rate we have to charge; As reference with GO >> b) The rate of CST on interstate sale other than sale to registered dealers shall be the rate of VAT / State Sales Tax applicable in the state of the selling dealer. it mean >> 3% against C Form and 4% without C Form, if the local VAT rate is 4%. i am correct or wrong; please suggest. thanks in advance.

[Guest]

You are absoulutely Right. If Party is not giving Form C or unregister we have to charge local tax as CST. i.e. if local tax rate is 12.5 % on X product than we have to charge 12.5 % CST without Form C and if local rate of tax is 4 % or 15 % than we have to charge 4 % or 15 % as CST without form C

[Guest]

If you are selling to a non registered dealer outside your state, the rate of tax as applicable in your state shall be applicable, irrespective of the fact that it is less than or more than 3%

AI Summary

CST rate without C Form: local VAT rate applies to interstate sales to unregistered buyers. Interstate sales to purchasers who do not furnish Form C or who are unregistered must be charged CST at the seller's local VAT/state sales tax rate; the concessional CST rate available with Form C does not apply where Form C is absent, so sellers should apply the standard local tax rate on such interstate transactions.