Majority of people are confused with the words of DVAT/ VAT /TIN/ Sales Tax/ CST . However all these terms are basically same. The basic difference between VAT and CST is based on the “where the buyer and seller are situated” .If they two are in the same state:- VAT is applicable If they are in different states:- CST is applicable. The moment you make an interstate sale, you become eligible for CST and have to get registered for that. VAT on the other hand is completely turnover dependent ie whenever your company's turnover exceeds your state's threshold limit you need to register for VAT.