New Delhi, May 30 (UNI) The Union government today announced reduction in the Central Sales Tax (CST) on sale of inter-state goods from 3 per cent to 2 per cent with effect from June 1.
The Finance Ministry issued the notification to this effect this evening.
CST was cut to 3 per cent on April 1, 2007 from 4 per cent earlier.
The reduction announced this evening is a part of the road map to phase it out by March, 2010 to pave the way for introduction of Goods and Services Tax(GST), the system being followed in most developed countries.
The decision was taken during consultation between the Union government and the empowered committee of state finance ministers, the ministry said in a statement.
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