What are the `sales' not liable to tax under the VAT Act?

Answer 1

Since the VAT Act applies only to sales within a State, the following sales shall not be governed by the VAT Act:

a) sale in the course of inter-State trade or commerce which shall continue to be liable to tax under the Central Sales Tax Act, 1956;

b) sale which takes place outside the State; and

c) sales in the course of export or import.