Vat or cst

jay (Querist) 16 March 2012 This query is : Resolved
I am Ramesh and I am doing trading in ice-cream. My business is in Surat, gujarat.

I am also selling the goods out of Gujarat. But now I have one problem. One of my good customer, who is doing business in Maharashtra told me to deliver the goods directly to his client in Gujarat itself. It’s really a big order for me.

But my problem is that whether I should charge VAT on the bill or CST because goods are not going outside the state..

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R K JAIN (Expert) 17 March 2012
You have to charge VAT since it is a local sale. For CST the goods must move out of state but in this case the goods are not moving out of state.

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