Introduction
Central Sales Tax is a tax on Sale levied by the Central Government under the provisions of
Central Sales Tax Act, 1957. As per the provisionsof this Act, any movement of goods from one
State to another on account of sale/purchase or transfer of document of Title to goods between
two separate parties is considered as an Interstate sale/purchase. All such transactions are liable
to CST. Any movement of goods otherwise than assale, sent outside the state or country, is
exempted from levy of CST. Examples of such Transactions are Consignment and Branch
Transfers outside the sate, Exports etc.
Basics of Central Sales Tax (CST)
It is important to understand the meaning of certain terms used in the CST Act. Some of the terminologies are as follows:
Inter-State Sale
A sale or purchase of goods shall be deemed to take place in the course of inter-state trade or
commerce if the sale or purchase
a) occasions the movement of goods from one state to another; or
b) is effected by a transfer of documents of title to the goods during their movement from one
state to another.
Declared Goods
Declared Goods means goods declared under Section 14 of the CST Act, to be of special importance in inter-state trade or commerce. Some of the important items are cereals, coal including
coke in all forms excluding charcoal, cotton in un-manufactured form, cotton fabrics and cotton
yarn, crude oil, hides and skin, iron and steel, jute, oil seeds, pulses, man-made fabrics, sugar,
un-manufactured tobacco and woven fabrics of wool.
Registration under CST Act
Every dealer, liable to pay Central Sales Tax has to register himself with the Sales Tax Authority,
that is, dealers who effect inter-state sales are required to register under CST Act. Hence, intermediaries like agents, transporters, who only facilitate sales are not required to be registered, as
they do not affect sales. However, a dealer may voluntarily apply for registration under CST Act
even if he is not liable to pay Central Sales Tax or if goods sold or purchased by him are exempt
under state sales tax law. Registration brings many advantages. For example, the dealer can
issue ‘C’ form and purchase goods at concessional rate.
Rate of Central Sales Tax
Different rates are prescribed depending upon the nature of inter-state sale such as
a. Sale to registered dealers.
b. Sale to unregistered dealers.
(i) Sale of declared goods to unregistered dealers.
(ii)Sale of goods other than declared goods to unregistered dealers.
Central Sales Tax is a tax on Sale levied by the Central Government under the provisions of
Central Sales Tax Act, 1957. As per the provisionsof this Act, any movement of goods from one
State to another on account of sale/purchase or transfer of document of Title to goods between
two separate parties is considered as an Interstate sale/purchase. All such transactions are liable
to CST. Any movement of goods otherwise than assale, sent outside the state or country, is
exempted from levy of CST. Examples of such Transactions are Consignment and Branch
Transfers outside the sate, Exports etc.
Basics of Central Sales Tax (CST)
It is important to understand the meaning of certain terms used in the CST Act. Some of the terminologies are as follows:
Inter-State Sale
A sale or purchase of goods shall be deemed to take place in the course of inter-state trade or
commerce if the sale or purchase
a) occasions the movement of goods from one state to another; or
b) is effected by a transfer of documents of title to the goods during their movement from one
state to another.
Declared Goods
Declared Goods means goods declared under Section 14 of the CST Act, to be of special importance in inter-state trade or commerce. Some of the important items are cereals, coal including
coke in all forms excluding charcoal, cotton in un-manufactured form, cotton fabrics and cotton
yarn, crude oil, hides and skin, iron and steel, jute, oil seeds, pulses, man-made fabrics, sugar,
un-manufactured tobacco and woven fabrics of wool.
Registration under CST Act
Every dealer, liable to pay Central Sales Tax has to register himself with the Sales Tax Authority,
that is, dealers who effect inter-state sales are required to register under CST Act. Hence, intermediaries like agents, transporters, who only facilitate sales are not required to be registered, as
they do not affect sales. However, a dealer may voluntarily apply for registration under CST Act
even if he is not liable to pay Central Sales Tax or if goods sold or purchased by him are exempt
under state sales tax law. Registration brings many advantages. For example, the dealer can
issue ‘C’ form and purchase goods at concessional rate.
Rate of Central Sales Tax
Different rates are prescribed depending upon the nature of inter-state sale such as
a. Sale to registered dealers.
b. Sale to unregistered dealers.
(i) Sale of declared goods to unregistered dealers.
(ii)Sale of goods other than declared goods to unregistered dealers.
No comments:
Post a Comment