CST SALES RETURN, VAT + CST

[venkat eswaran]

Dear Experts,

WE got our CST sales rejected matls after 2 years. Since it is more than 6 months we are not able to reverse the CST 2 percent paid amount,

but we need to account in sales return. we have accounted in sales return without reversing CST 2 percent .

My question is whether we have to show this transaction in CST Return or Not? Since no CST is revresed. Please give your valuable reply

Thanks & regards

Venkat

Posts / Replies

[Pradeep Khatri]

Dear Venkat,

You are statutorily required to show such rejected material in the Statutory Returns, though no benefit of tax would be available to you.  If you do not incorporate in your CST Return, then, Department may treat it as purchases from unregistered dealers and may ask to pay the tax on such purchases.

You would have to establish one to one correlation in this regard at the time of conducting VAT/CST assessment with documentary evidences.

Regards,

Team YAGAY & SUN

(Management & Indirect Tax Consultants)