Central Sales Tax rate reduction takes effect, aligning inter state CST with state VAT for different buyer categories.
Central Sales Tax amendments effective 1 April 2007 revise inter state levy rules: sales to registered dealers against Form C are subject to a reduced CST rate but the lower of that rate and the seller State VAT/State Sales Tax applies; inter state sales other than to registered dealers and sales to Government Departments are charged at the VAT/State Sales Tax rate of the selling State, and Government purchases against Form D are withdrawn. States are enabled to levy VAT on tobacco by removing it from central schedules and declared goods lists while preserving specified devolution entitlements.