Answer / maulin

whenever there is an intra-state purchase of goods, VAT or
SALES TAX(depending on the respective state government) is
charged at 4% or 12.5% as the case may be. But for
inter-state purchase of goods, CST(central Sales Tax) is to
be levied at concessional rate(2%). In order to show that
the purchase is an inter-state purchase, the purchaser will
issue c FORM to the seller. Now, the seller can charge CST
instead of VAT or SALES TAX. Also, the seller cannot get any
VAT credit against CST. CST is the revenue of the state of
seller.

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