Year 2008
An important meeting was also taken by the then Hon’ble Union Finance Minister on 28th January 2008 to deliberate on various monetary and non-monetary measures to be adopted by states and centre so that CST can be reduced to 2%. After due discussions and deliberations, a notification reducing the CST rate from 3% to 2% with effect from 1st June, 2008 was issued by the Government of India. Revised guidelines for the CST compensation were also issued on 22nd August, 2008. The issue regarding the further reduction of CST rate from 2% to 1% w.e.f. April, 1, 2009, was considered by Empowered Committee in its meeting held on 21st January, 2009 and after due consideration it was decided to retain the 2% CST rate till GST is introduced.