Claim of CST

[Ajay Kumar Kaushik]

We are registered dealer in D VAT and sold fire fighting equipments to one of our client in Gurgaon and charged CST @ 12.5% but our client insisted to charge CST @ 3% and they confirm that they can not issue Form “C” also. They also issued a Debit Note for 9.5% CST . Please suggest can they deduct the amount. If they cant deduct, under which section I Can claim the balance 9.5% CST from my client.

[Surender Gupta]

please refer to section 8(1) read with section 8(4) of the Central Sales Tax Act, 1956

AI Summary

CST rate determination: buyer sought reduced rate without Form C, seller advised to invoke Central Sales Tax Act provisions. Dispute whether a purchaser can deduct differential central sales tax by issuing a debit note when refusing to furnish Form C; adviser refers to Central Sales Tax Act provisions governing applicable rate and documentation as determinative of entitlement to recover the balance tax.