VALUE ADDED TAX RATES

VAT (Value Added Tax) do not have any uniform rate. The following table depicts the varied rates of VAT.

Description	Rate of VAT
Natural and unprocessed products, items which are legally barred from taxation or items having social implications	0%
Precious stones, precious and semi-precious metals, bullion, gold and silver ornaments	1%
Items of basic necessities, all agricultural and industrial outputs, capital goods and declared goods	4%
Luxury Goods	20%
All goods other than goods falling under aforesaid categories	13.5%

CST (Central Sales Tax) rate varies with situations. Unlike Service Tax and VAT, neither CST has any uniform rate, nor is the rate solely dependent upon the category of goods. The underlying table will elaborate the applicability of CST rates.

Nature of Goods	Sale to Govt.on submission of ‘D’ Form	Sale to registered dealer for resale/use in manufacture on submission of ‘C’ Form	Sale in any other case
Declared Goods	4% or State Sales Tax(or VAT), whichever is lower	4% or State Sales Tax(or VAT), whichever is lower	2 * VAT rate
Other Goods	4% or State Sales Tax(or VAT), whichever is lower	4% or State Sales Tax(or VAT), whichever is lower	10% or State Sales Tax(or VAT), whichever is lower