1) CST –
CST is a tax on sale/ purchase of goods. Credit on Sales Tax is not available.
à Tax on purchases is added to the inventory.
Also any incidental charges of purchases like freight, clearing & forwarding charges etc are to be added to the inventory.
à Components of CST – a) CST
à Rates of CST differ from forms to forms like Form C, Form F , Form H , Form E1.
Form C is issued when – Goods are purchased\sold outside state in manufacturing, Mining etc. Rate is 2 %.
Form F is issued when –
There is a stock transfer between two units \ warehouses. Rate is 0%
Form H is issue when – There is a Merchant Export
i.e. when goods are given to a merchant for export sales purpose. Rate is 0%.
CST is a tax on sale/ purchase of goods. Credit on Sales Tax is not available.
à Tax on purchases is added to the inventory.
Also any incidental charges of purchases like freight, clearing & forwarding charges etc are to be added to the inventory.
à Components of CST – a) CST
à Rates of CST differ from forms to forms like Form C, Form F , Form H , Form E1.
Form C is issued when – Goods are purchased\sold outside state in manufacturing, Mining etc. Rate is 2 %.
Form F is issued when –
There is a stock transfer between two units \ warehouses. Rate is 0%
Form H is issue when – There is a Merchant Export
i.e. when goods are given to a merchant for export sales purpose. Rate is 0%.