Government of India has reduced the rate of tax as specified in sub-section (1) of section 8 of the Central Sales Tax Act, 1956 from 3% to 2%
W.E.F. 1st June, 2008.
CST REDUCED TO 3%
CENTRAL SALES TAX (CST) REDUCED TO 3% FROM IST APRIL 2007
1. The rate of CST on inter-state sale to registered dealers (against
Form-C) shall stand reduced from 4% to 3% or the rate of VAT / State
Sales Tax applicable in the State of the selling dealer, whichever is
lower.
2. The rate of CST on inter-state sale other than sale to registered
dealers shall be the rate of VAT / State Sales Tax applicable in the State
of the selling dealer.
3. The rate of CST on inter-state sale to Govt. Departments shall also
be the rate of VAT/State Sales Tax applicable in the State of the selling
dealer indicated at (b) above. The facility of inter-state purchases by
Government Department against Form-D stands withdrawn.
(Based on press release by Press Information Bureau Dated 29.03.2007)
