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Answer Posted / arunendra tiwari
Under the CST Act, the tax is collected at one stage of
purchase or sale of goods. Therefore, the burden of the
full tax bond is borne by only one dealer, either the first
or the last dealer. However, under the VAT system, the tax
burden would be shared by all the dealers from first to
last. Then, such tax would be passed upon the final
consumers.
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