Effective date

[BVC&Co CharteredAccountants]

WHETHER CST 2% IS EFFECTIVE FROM 11TH MAY 2008 OR NOT?

[Guest]

The reduction in CST Rate is to be made by way of specific notification and so far no such notification is issued to reduce the rate to 2% as specified in the Budget Speech. So the rate remains so far at 3%. The enactment of Finance Bill 2008 from 10.5.2008 has no relation to this and there is no proposal in the Finance Bill in this regard.

[Guest]

CST 2% is effective from 01 Jun 08

AI Summary

Central sales tax rate change requires specific notification; absent notification, the prior rate remains operative until formally changed. Whether the Central Sales Tax rate reduction announced in the Budget is effective from 11 May 2008: one advisory says a rate reduction requires a specific notification and none had been issued, so the prior rate remains operative and the Finance Bill's enactment does not effect the change; an alternative advisory asserts the reduced rate became effective from 1 June 2008.