Presented by
JesbincyriacjossY
GovtLawCollege,TVM

1. Central Sales Tax (CST) is a tax on sales
of goods levied by the Central
Government of India.
2. It is applicable only in the case of inter-
state sales and not on sales made within
the state or import/export of sales.
3. Inter-state sale means, when a sale or
purchase constitutes movement of goods
from one state to another.

a) It extends to the whole of India.
b) Every dealer who makes an inter-state sale must
be a registered dealer and a certificate of
registration has to be displayed at all places of
his business.
c) There is no exemption limit of turnover for the
levy of central sales tax.

The act intends to;
1. (sec3 to 5) Formulate principles for
determining when a sale or purchase of
goods takes place in the course of inter
state trade or sale outside a state or sale
in the course of import or export from
India
2. (sec6 to 9) Provide for levy, collection and
distribution of taxes on sale of goods in
the course of interstate trade or
commerce

• APPROPRIATE STATE S 2(b)
1) In relation to a dealer who has one or more place of
business situated in the same state.
2) In relation to a dealer who has more than one place of
business situated in different states, every such state with
respect to the place or places of business situated within its
territory

Any person who whether regularly or otherwise carries on
the business of buying, selling, supplying or
distributing goods, directly or indirectly, for cash or for
deferred payment, or for commission, remuneration or
other valuable consideration.

1. Agent of a dealer outside the state acting
as mercantile agent, agent handling
goods, documents of title and agent for
collection or as guarantor
2. A Government (state or union) that buys,
sells & supplies or distribute goods (other
than waste, scrap, surplus material or old
store or discarded machinery or part there
of) in the course of business or otherwise

A person should register himself u/s 7
the registration may be
1)voluntary registration or
2)compulsory registration,

As per section 7(1), every dealer liable to pay
Central Sales Tax has to register himself with
sales tax authority.
As per section 6(1) of CST Act, every dealer
effecting sale in the course of Inter State
trade or commerce is liable to pay CST.
Thus, only those dealers who ‘effect’ inter
state sales are required to register under CST Act

7(2) of CST Act
A dealer registered with State sales tax
authorities may voluntarily apply for registration
under CST Act even if he is not liable to pay
Central Sales Tax
He is entitled to apply for registration even if
goods sold or purchased by him are exempt
under State sales tax law.

This includes all material articles or commodities
and all kind of movable property excluding
newspapers, actionable claims, stocks, shares, and
securities. If newspapers are sold as scrap then, it
will be charged to central sales tax if it is an inter-
state sale.

Declared Goods means goods declared
under section 14 to be of special
importance in inter-state trade or
commerce, this list contains more than
fifty goods
Example: Coal, Cotton ,Crude Oil ,Jute
,Oilseeds ,Pulses , Sugar

It includes:
any trade, commerce or manufacture, or any
adventure or concern in the nature of trade,
Commerce or manufacture, whether or not such
trade, commerce, manufacture, adventure or
concern is carried on with a motive to make gain
or profit and whether or not any gain or profit
accrues from such trade, commerce,
manufacture, adventure or concern; and
Any transaction in connection with, or ancillary
to, such trade, commerce, manufacture,
adventure or concern

It includes :
1. In any case where a dealer carries on
business through an agent by whatever
name called, the place of business of such
agent
2. A warehouse go down or other place
where a dealer stores his goods and
3. A place where a dealer keeps his books of
account

It means transfer of property in goods by one person
to another for cash or for deferred payment or for any
valuable consideration.
It includes the following five category of deemed sale
1)Hire purchase 2) work contract 3) Lease 4) supply
of food and drinks in a hotel 5) Supply of goods by
association or body of person to its members

Sale is Inter-State when
(a) sale occasions movement of goods from one
State to another
or
(b) is effected by transfer of documents during
their movement from one State to another.

once the goods are taken out of dealers place
then final destination should be taken into
consideration and not the route through which
goods are transferred

It means amount payable to a dealer as consideration
for the sale of any Goods. This includes any sum
charged for anything done by the dealer in respect of
goods at the time of or before the delivery thereof

It means any law for the time being in force in any state, or part
thereof, which provides for the levy of taxes on the sale or
purchase of goods generally. Now VAT Legislation of a state
shall also be included within the ambit of the definition of
“State Tax Law”.

It is the aggregate of the sale prices received and
receivable by the dealer in respect of sales of any
goods in the course of inter-state trade or commerce
made during a prescribed period. Prescribed period is
the period in which sales tax return is filed.

It means the year applicable in relation to a dealer under
the general sales tax law of the appropriate state, and if,
there is no such year applicable, it is the financial year.