The government on Friday reduced the central sales tax (CST) rate to 2.0 percent on inter-state sale of goods from June 1, in line with the finance minister's February budget announcement.
The new rate will replace the 3.0 percent charged earlier, a finance ministry statement said.
It said the new CST on inter-state sale of goods to registered dealers would now be the lower 2.0 percent plus the rate of value-added tax or state sale taxes as applicable.
The reduction forms part of the roadmap for phasing out CST completely by March 31, 2010.
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