#### 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?

-a-

Cst payable=Output Cst=2400

-ea-

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?

-a-

Cst payable=Output Cst=600

Hence even if CST sales less than CST purchases,then also CST Payable

-ea-

1. Tax Practical
2. Practical VAT CST
Practical VAT CST