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1.The rate of CST on inter-State sale to registered dealers (against Form-C) shall stand reduced from 4% to 3% or the rate of VAT applicable in the State of the selling dealer, whichever is lower.(Present rate of CST Is 2 %) 2.The rate of CST on inter-State sale other than sale to registered dealers shall be the rate of VAT applicable in the State of the selling dealer.

A Bill namely, the Taxation Laws (Amendment) Act, 2007 (Bill No. 13/C of 2007) had been introduced & passed in Lok Sabha in order to further amend the Central Sales Tax Act, 1956.and amendments done by this bill are applicable from 01.04.2007. The net main effect of the amendments is as follows:- 1.The rate of CST on inter-State sale to registered dealers (against Form-C) shall stand reduced from 4% to 3% or the rate of VAT applicable in the State of the selling dealer, whichever is lower.(Present rate of CST Is 2 %) 2.The rate of CST on inter-State sale other than sale to registered dealers shall be the rate of VAT applicable in the State of the selling dealer. 3.The rate of CST on inter-State sale to Government Departments shall also be the rate of VAT applicable in the State of the selling dealer, indicated at (b) above. The facility of inter-State purchases by Government Departments against Form-D stands withdrawn.

Dear, your query is that What is the rate of VAT for interstate sales without ‘C’ form? answer of your query is that There is zero VAT for sales in course of inter state trade and commerce, against declaration in form ‘C’. Such sales are taxed under the CST Act. Thanks & Regards,