CENTRAL SALES TAX (CST) REDUCED TO 3% FROM 1 ST APRIL, 2007 - 001/2007 - Central Sales Tax

MINISTRY OF FINANCE ( Department of Revenue) Notification No 1/2007-CST., Dated: March 29, 2007 S.O. 464(E)- In exercise of the powers conferred by sub-section (2) of section 1 of the Taxation Laws (Amendment) Act, 2007(16 of 2007), the Central Government hereby appoints the 1st day of April, 2007, as the date on which the said Act shall come into force. F.No.34/135/2005-ST R G CHHABRA Under Secy PRESS INFORMATION BUREAU GOVERNMENT OF INDIA ***** CENTRAL SALES TAX (CST) REDUCED TO 3% FROM 1 ST APRIL, 2007 New Delhi: Chaitra 8, 1929 March 29, 2007 The Government of India, Ministry of Finance, Department of Revenue, issued the notification here today, to bring into force the provisions of the Taxation Laws (Amendment) Act, 2007, w.e.f. 1 st April, 2007. Through this Act, the following amendments, inter-alia, have been carried out to the Central Sales Tax Act, 1956 and the Additional Duties of Excise (Goods of Special Importance) Act, 1957: a) 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. b) 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. c) The rate of CST on inter-State sale to Government 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 The facility of inter-State purchases by Government Departments against Form-D stands withdrawn. d) Enabling provisions have been made for the States to levy VAT on Tobacco. Tobacco has been dropped from the First Schedule of the Additional Duties of Excise (Goods of Special Importance) Act, 1957 as also from the list of declared goods, to enable States to levy VAT on Tobacco, at rate higher than 4%, without losing their share out of 1% devolution from the Divisible Pool of Central Taxes. All these amendments as also other provisions of the Act shall be effective from 1 st April, 2007. BSC/BY/GN-191/2007