Haryana cuts inter-state CST on Maruti vehicles

The Haryana government on Tuesday slashed the rate of Central Sales Tax (CST) on inter-state sale of Maruti vehicles from 2% to 1% with effect from November 1. The decision was taken at a meeting of the state cabinet presided over by chief minister Bhupinder Singh Hooda.

An official spokesperson of Haryana government said that Maruti Suzuki India had asked for a reduction in CST on inter-state sales, since the general CST rate had been brought down, from 3% to 2% with effect from April 1, 2007.

Maruti would gain Rs1.4bn in the remainder of the current fiscal year following the reduction in CST in Haryana. The annual benefit to Maruti would be Rs2bn in the subsequent years, the spokesperson for the Haryana government said.

The Haryana government also decided to reduce the rate of VAT on the sale of earthmoving equipment sold to state and central government departments, Union Territories, Public Sector Undertakings and municipal bodies from 12.5% to 4%.

Source : India Infoline.com - Mumbay, India, dated 21/10/2008