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Untitled Document


Lr.No. VAT Cell / 50504/2005

Dated : April 1, 2008

Sub : CST Act 1956 – Phasing out of CST – Reduction of rate of tax from 3% to 2% from 1st April, 2008 – Certain instructions issued – Reg.

It was proposed to reduce the rate of CST from 3% to 2% with effect ffrom 1.4.2008 in the Union Budget Speech for the year 2008-2009. However, so far, the Government of India have not issued any Notification reducing the rate to 2%. It has come to the notice that certain assessing officers are clarifying to the dealers that the rate of CST applicable from 1.4.2008 is 2%. Therefore, it is hereby clarified that until the notification reducing the rate of tax is issued by the Government of India, the present rate of 3% will continue.

(T. Jacob)
Commissioner of Commercial Taxes