Taxation is a complicated subject. Taxes are categorized into direct taxes and indirect taxes. Direct Tax is the tax that people directly pay to the government, for example, income tax. Indirect Tax is something which the people indirectly pay to the government through the medium of manufacturers and distributors, for example, VAT, CST.
In recent times, many states in India have replaced CST with VAT to overcome the negative effects of double taxation and tax evasion being caused by CST. Businesses are mandated to follow the VAT and CST regulations with care and ensure compliance with the governmental orders. Also, VAT is a new law in India.
Therefore, considering these complexities, it is highly advisable to gain expert advice from tax or accountancy professionals to ensure that businesses stay compliant with the governmental mandates at all times.
References
- https://mpra.ub.uni-muenchen.de/206/1/MPRA_paper_206.pdf
- https://www.sciencedirect.com/science/article/pii/S0377221703007409