Resources for Small Business

[Infograph]Everything that you need to know about VAT, CST and Service Taxation


Once you have started selling online, you come across various terms in relation to taxation like VAT, CST and Service Tax. The main concern is not being from a commerce background, the biggest headache becomes understanding what they mean, how they are charged and what are the exemptions in these. Turning a blind eye to these can lead to penalties and issues related to shipping of products.

Therefore we thought of coming up with an infograph that will make this entire topic very easy for you to understand.

This infograph covers the basic definitions, when to get registered, rates of VAT, CST and Service Taxation

VAT, CST and ST Infograph

VAT, CST and ST Infograph


Now that you  have gained the basic knowledge for the above, we would also like to add various lists that are important for you to know.

Exemptions In Various Taxation

There are few exceptions in the list of goods that are levied with taxes which are mentioned as follows

Exemptions in VAT

There are various products that have been exempted from VAT whose list is as follows

Items that are exempted from VAT

If you want to know more about how VAT registration is done, you can go forward and rake this resource- VAT Registration Simplified

Exemptions in CST

The various situations in which CST is exempted are as follows

  1. On installation.(if shown separately in invoice.)
  2. Commissioning (if shown separately in invoice.)
  3. Goods rejected.
  4. Trade and cash discounts are excluded for purpose of calculating CST.
  5. If goods are returned within 6 months. This time limit does not apply to rejection of goods since in that case there is no ‘sale’
  6. On outward freight (if charged separately) and outward insurance if property in goods passes to buyer at the time of dispatch.

For reference of what Declared Goods are, you can refer this resource – List of Declared Goods

Exemptions In Service Tax

Items in the Negative list of Service Tax

This blog has majorly covered everything that you as an entrepreneur should know about taxations. Hope it solved your queries and if you are still left with a few, you can always put a comment and let us know and we’d help you out.

 “It’s time to charge taxes as well than just paying them. Start selling online.”


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Divya Sharma Dixit

Divya Sharma Dixit

Divya Sharma Dixit: Electronics and Communication Graduate bitten by the StartUp Bug.
From being an Engineer to a Journalist to Business Development officer and now Marketing, she always is on her toes. She takes life as it comes.
Writing is her mode of relaxation.
Pretty active on Social Media, be it Facebook or Quora.

Ping her if you have any query, suggestion or even if you just want to say hi!!