Wednesday, March 2, 2011

CST % on Declared goods proposed to Increase 5%

     In the Budget 2011-2012,  it has been proposed to increase celling rate of CST on declared goods under section 15 from 4% to 5%.   Presently, State Governments can not levy VAT more than 4% on particular declared goods.   Declared goods are those which have been their own importance and have been defined in Clause 74 of the Finance Bill 2011-12 which runs as under :-

Declared Goods/CST

74. "In section 15 of the Central Sales Tax Act, 1956 , in clause (a), for the words "Four per cent.", the words "five per cent." shall be substituted"

The relevant notes on clause 74 runs as under 

"Clause 74 of the bill seeks to amend section 15 of Central Sales Tax Act, 1956, so as to increase the ceiling imposed though the Central Sales Tax on the power of the States to levy Vat on the "declared goods" from 4 per cent to 5 per cent."

View List of Declared Goods/Complete CST Act. (Click Here)

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