![]() ![]() Sale to registered dealer is 4% or sales tax rate for sale within the State, whichever is lowe r, if the goods are eligible and are specified in the Registration Certificate issued to the purchasing dealer. CST rates to various categories are discussed below: (ii) Sale of goods other than declared goods to unregistered dealers. (i) Sale of declared goods to unregistered dealers. Registered dealers can purchase goods at concessional rates by issuing the C Form.ĭifferent rates are prescribed depending upon the nature of inter-state sale such as: Intermediaries like agents and transporters are not required to be registered, since they do not affect sales. As per the CST Act, every dealer who carries out inter-state sales has to be registered with the Sales Tax Authorit y. Some of the important items are cereals, iron and steel, jute, oil seeds, pulses, man-made fabrics etc.Įvery dealer who carries out the inter-state sales is liable to pay Central Sales Tax. The above t wo modes are mutually exclusive.ĭeclared Goods means goods declared under Section 14 to be of special importance in inter- state trade or commerce. (ii) Transfer of documents of title to the goods during their movement from one State to anothe r. Inter-s tate sale is deemed to take place if there is: (i) Movement of goods from one state to another or It is impor tant to understand the meaning of certain terms used in the CST Act. No CST is levied when sales is made to a dealer located in SEZ. This form is issued by a dealer located in a Special Economic Zone (SEZ). These goods are then sold in export and the form enables seller of the goods to the exporter to claim deduction on the goods sold for export. ![]() The purchase of goods is for an export order or in pursuance of an export order. This form is issued by an exporter for purchase of goods. One Form F covering receipts during one calendar month has to be issued. To claim inter-state movement of goods as “not a sale”, the dealer has to produce a declaration in Form ‘F’ received from Consignment Agent or Branch Office in another State. The CST is not payable if there is only inter-state stock transfer and there is no sale. This form is issued when goods are despatched to another state as a consignment or to the branch of a dealer in another State. This form enables the purchaser to claim exemption form CST on subsequent sale of goods. This form is issued by the second or the subsequent seller when the goods move from one state to another in a series of inter-state sales by transfer of documents of title. This enables the purchaser to claim exemption from CST on the second inter-state sale during the movement of goods by transfer of documents of title. This form is issued by the dealer who makes the first inter-state sale during movement of goods from one State to another. This concession on CST is applicable if Form D is issued by the government department which purchases the goods. Sale to government is taxable 4% or applicable sales tax rate for sale within the State whichever is lower. The purchasing dealer is eligible to get these goods at concessional rate if a declaration in C form is submitted to the selling dealer. The sales tax on inter-state sale is 4% or the applicable sales tax rate for sale within the State whichever is lower if the sale is to a dealer registered under CST and the goods are covered in the registration certificate of the purchasing dealer. These forms are to be prepared in triplicate. Form D is to be issued by government organization departments making purchases. Dealers have to issue declarations in these forms printed and supplied by the Sales Tax authorities. Forms C, E1, E2, F and H are printed and supplied by Sales Tax authorities. The type of forms are C, D, E1, E2, F, H and I. It is so payable to appropriate state in which the dealer has a place of business.ĭealers have to issue certain declarations in prescribed forms to buyers/sellers. ![]() It is payable in respect of sale of goods effected by him during the year.ĥ. it is payable by the dealer who makes the sale in the course of interstate trade or commerce.Ĥ. it is levied on Turnover, which in turn is computed on the basis of the sale price.ģ. The CST Act becomes applicable and CST is levied at the Rate specified.Ģ. WHAT HAPPENS IF THE ABOVE CONDITION ARE SATISFIEDġ. the sale should not be a sale inside a state. The sale should be made in the course of interstate trade or commerce ( i.e. ![]() He should made a sale of any goods ( declared or undeclared)Ħ. He should made a sale to any buyer ( registered dealer or unregistered dealer)ĥ. There should be a Dealer and such dealer must be registered under the CST Act.ģ. The sale should not take place in the course of import into or export from India.Ģ. WHAT ARE THE CONDITIONS FOR CST ACT TO BECOME APPLICABLE.ġ. ![]()
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