Effective date

[BVC&Co CharteredAccountants]

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

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.

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.