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VAT or CST FOR Interstate purchase
#1
Question 
I am new in business And don't know much about taxation laws. 
Someone told me that if I buy from a supplier out of state I need to pay 2% CST for that. I want to know if I will pay 2% CST for that then can I claim it in my vat/CST return for sell of those products?
ANd how is c form generated and what are rules of it?
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#2
Dear Naveen
You cannot claim credit of CST paid on purchase.
Also, you cannot utilise your VAT credit on CST sales.

C form is generated alongwith the sales tax return.

You should consult a lawyer for this who can handle all these formalities for you.
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#3
If u purchase from outside state you will charged CST and same way when you sale outside state you need to generate tax invoice and charge CST.
You can able to take input tax credit on these transactions.

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#4
No. Input is not available in csr
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#5
Yday only I spoken to my CA on this issue, will again ask him for confirmation.

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#6
I am a CA myself
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#7
OK.

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Then it means, as a regd seller we need to generate tax invoices for all our orders and need to pay tax w/o getting any input credit??

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Why I am asking this as recently I have applied for VAT and TIN no. and waiting for final confirmation for starting my business.

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#8
No input credit is given against cst. Also a percentage of input vat is disallowed subjected to amount of interstate sales

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#9
It means we cannot take vat credit for online sales as most of them are interstate????

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#10
Yes!!
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