What is CST?
CST mean Central Sales Tax
It is tax on sale of goods outside state
What is CST Payable
Tax on Cst Sales is called Output CST
This Output Cst is called CST Payable
Note:-
While computing Vat,we do Output Vat-Input Vat
but in CST,Output CST is CST Payable
(Input CST is not reduced)
Difference between VAT and CST
| VAT | CST |
| It is a tax on sale of gooods within state | It is a tax on sale of gooods outside state |
| Vat Computation | CST Computation |
| Output Vat | Output Cst |
| Less | |
| Input Vat | |
| Vat Payable | CST Payable |
Hence there is no Input Cst
Case 4A
Suppose a dealer makes CST purchase and sales as follows
Purchase
| C LTD | |
| Purchase | 50000 |
| Cst 2% | 1000 |
| 51000 | |
Sale
| Z LTD | |
| Sale | 120000 |
| Cst 2% | 2400 |
| 122400 | |
What is cst payable?
View AnswerCst payable=Output Cst=2400
Case 4B
Suppose a dealer makes CST purchase and sales as follows
Purchase
| C LTD | |
| Purchase | 50000 |
| Cst 2% | 1000 |
| 51000 | |
Sale
| Z LTD | |
| Sale | 30000 |
| Cst 2% | 600 |
| 30600 | |
What is cst payable?
View AnswerCst payable=Output Cst=600
Hence even if CST sales less than CST purchases,then also CST Payable
