Any movement of goods otherwise than as sale, sent outside the state, is exempted from levy of CST. This exemption will be available only on submission of required statutory forms.
Also some of the Interstate transactions are exempted if goods are supplied to Special Economic Zones or to UN or Diplomatic missions etc. The Centralised system of Sales Tax was introduced to avoid the cascading effect of taxes as the tax was levied by more than one state in case of inter-state transactions. Also to clear the confusion relating to levy and collection of Sales Tax between the states involved in this interstate transaction, certain provisions are introduced in the CST Act.
The Dealers are provided with an option to register themselves under the provisions of Central Sales Tax Act, The unregistered dealers engaged in interstate transactions are required to pay CST at higher rates than the rates applicable to the Registered dealers. Also the unregistered dealers cannot claim any exemptions on the basis of Statutory Forms as specified by the CST Act.
Inter-s t ate sale is deemed to t ake place if there is: i Movement of goods from one state to another or. The above t w o modes are mutually exclusive. Declared Goods. Declared Goods means goods declared under Section 14 to be of special importance in inter- state trade or commerce.
Some of the important items are cereals, iron and steel, jute, oil seeds, pulses, man-made fabrics etc. Registration under CST Act. Every dealer who carries out the inter-state sales is liable to pay Central Sales T ax. Intermediaries like agents and transporters are not required to be registered, since they do not affect sales.
Registered dealers can purchase goods at concessional rates by issuing the C Form. Rate of Central Sales T ax. Different rates are prescribed depending upon the nature of inter-state sale such as:. Sale to registered dealers.
Sale to unregistered dealers. CST rates to various categories are discussed below:. Sale to Registered Dealers. The Purchasing dealer has to submit the declaration in the prescribed C Form to the selling dealer. Sale to Unregistered Dealers. Form C. Otherwise, the tax is higher, i. This concessional rate is applicable only if the purchasing dealer submits a declaration in prescribed C Form.
One C Form covers all the transactions in a whole financial year, irrespective of the total amount or value of transactions during the year. However, for transactions exceeding one financial year separate C Form is required for each financial yea r. Forms E1 and E2. According to Section 6 2 of the CST Act, only the first inter-state sale is taxable and the subse- quent sale during movement of goods by transfer of documents is exempt from tax, if the purchas- ing dealer is a registered dealer.
Just send a mail to — alokpatnia taxmantra. Startups and other businesses feel free to visit Taxmantra. Stay Updated. Welcome Onboard! Nature of Goods Sale to Govt. Assessee Duration of Payment Time of Payment Individual, Sole Proprietorship or Partnership or LLPs Quarterly If tax paid electronically: 6 th of the month following the quarter, for manual payment, 5 th of the month following the quarter.
Any other assessee Monthly If tax paid electronically: 6 th of the month following the relevant month, for manual payment, 5 th of the month following the relevant month. We tell your stories. Stories that inspire change. Login with Google. Login with Facebook. By signing up for yourstory you agree to the Terms of Service and Privacy Policy of the platform.
Trending Now Trending Stories. Read the full story. Latest Updates from around the world. Sign up to YourStory. TaxCloud Direct Tax Software. Need Help? About us. Download link sent. Category Taxation. Meaning of CST Central Sales tax refers to the tax levied on sales generated during inter-state trade and commerce in a country. It is an indirect, origin-based tax. Central sales tax is a subject of the Union List in the Constitution of India and is therefore, the prerogative of the Central Government to levy the same.
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