Applicability of CST rate

[Asked by Guest]

IN THE BUDGET 2008 CST RATE HAS BEEN REDUCED TO 2% IS THIS RATE IS NOTIFIED AND APPLICABLE W.E.F 1ST APRIL 2008 OR THE OLD RATE OF 3% WILL BE CONTINUED TILL PASSING OF THE BUDGET

CST @ 2% AGN. FORM -C will be applicable w.e.f 01/04/08. It was pre decided & W.e.f April 2009 CST is supposed to be @ 1%.Agn Form -c. GST ( Goods & services tax) is likely to come in 2010, then there will be only one tax , called GST. Regrads Vikas Kapoor

[Madhukar N Hiregange]

Applicable from 1.4.2008.

Though it is announced that the CST rate will be reduced from 01/04/08 still it is not notified. In the absence of notified rate, the rate continue to be @ 3% as of now, though it may be reduced retrospectively by way of notification later.

AI Summary

CST rate applicability hinges on formal notification; announced reductions may not take effect until notified.
Applicability of the Central Sales Tax rate reduced in the 2008 budget was contested as to its effective date: some argued the reduced rate applied from the fiscal start, while another argued that formal notification is required and until notified the existing rate continues, though a retrospective notification could alter the operative date.