VAT implications on inter state movement of goods?

Question

We as retailer purchased goods in one state (having VAT). Now we feel a need to move some of it to another state (having VAT). Would the other state charge 12.5 % (applicable rate) on the sale of the goods. We are not producers of the good, so should we pay such a high tax, when we just transfer the goods to another state.

Answer 1

Your question is not clear. At one point of time you are mentioning move the goods and another point you are saying sale of goods... If you are saying you are selling the goods to a person in another state than VAT is not applicable CST is applicable on inter state sale.

Answer 2

You will need to get registered in the other state tax office,get a TIN and CST No.and then bring the goods from your present place as stock transfer or paying 2% CST on the goods sent to the new place.Then you can sell the material in the normal way charging the VAT of the other state.

Answer 3

Movement of goods from one state to another is referred as stock transfer and will not attract any taxes.

Provided you have vat no. of the states from and to which the stocks are moved. For each state you will have to have a vat no.  And a CST rather TIN no for interstate sale.