CST 2% Notification

[Ashok Kumar.M]

Dear all,

I came to know that there was a notification regarding reduction of CST to
2% w.e.f. 1st June 08 and the same is reproduced below:

CST lowered to 2 per cent with effect from 1st June 2008

AIT News Network

NEW DELHI. The Government has lowered CST (Central Sales Tax) from 3 per
cent to 2 per cent with effect from 1st June 2008.

a.. Ministry of Finance, Department of Revenue has issued a notification
dated 30th May, 2008 to bring into effect from 1st June, 2008 the new
reduced rate of CST of 2 per cent on inter-State sales of goods.

b.. The rate of CST on inter-State sale of goods to registered dealers
(against Form-C) shall now be the lower of 2 per cent and the rate of VAT or
State Sales Tax applicable.

c.. The notification of new CST rate of 2 per cent in place of earlier 3
per cent is in tune with the announcement made by the Finance Minister Mr
Palaniappam Chidambaram in his Budget Speech in Parliament in February 2008
that the rate of Central Sales Tax would be reduced.

d.. The Central Government and the Empowered Committee of State Finance
Ministers have also agreed that the compensation for revenue loss to the
States in any year arising from the lowering of CST will be limited to the
proportionate loss based on the actual collection of CST.

NOTIFICATION No. 1/2008-CST

New Delhi, Dated: May 30, 2008

S.O.(E) In exercise of the powers conferred by the proviso to sub-section
(1) of section (8) of the Central Sales Tax Act, 1956 (74 of 1956), the
Central Government hereby reduces the rate of tax as specified in
sub-section (1) of section 8 of the said Act from three per cent to two per
cent with effect from 1st June, 2008.

[No. 1/2008-CST-F.No.28/1 1/2007-ST]

(R.G. Chhabra)
Under Secretary to Government of India

Now one more information was received that this notification has been
withheld.

Now I want to know what is the present status.

regards,

M. Ashok Kumar
Triton Valves Ltd.

[Ashok Kumar.M]

Dear all,

Further to my earlier mail, now it is confirmed regarding notification
reducing the CST to 2% w.e.f 01.06.2008.

Now we have called the person who has issued the notification and enquired
about the confusion and the news item. He has confirmed that the
notification is valid and now the rate of CST is 2%. Hence, kindly ignore
the news items and you can start charging only 2% against C form.

You can also contact Mr. R G Chhabra at 011 23095381, who has issued the
notification. He is Under Secretary to Government of India.

Thanks and regards

M.Ashok Kumar

Triton Valves Ltd