What is the primary purpose of the Central Sales Tax (CST) Act of 1956 in India?

To regulate the taxation on the sale of goods during inter-State trade or commerce, ensuring that no tax is levied without a supporting law.

CST is collected by the State Government where the goods are sold, but it is imposed by which level of government?

The Central Government of India.

Fill in the blanks: The current rate for Central Sales Tax in India is ___ percent, and it applies only to transactions between ___ states.

3; different

Explain the significance of Form C in the context of inter-State transactions under the CST Act.

Form C is significant for CST.

• Used by registered dealers.

• Claims concessional CST rate.

• Ensures lower tax for sales.

True or False: There is a minimum turnover limit for applying the Central Sales Tax.

False. There is no minimum turnover limit for applying the Central Sales Tax.

What are the essential conditions for a transaction to qualify as an inter-State sale according to the CST Act?

Essential conditions for inter-State sales.

• Contract must stipulate movement.

• Goods must actually move states.

• Sale causes the movement of goods.

In the context of CST, what does TIN stand for, and why is it important for dealers?

Tax-Payer Identification Number; it uniquely identifies dealers for all VAT and CST transactions.

Fill in the blank: Goods sold within a state but passing through another state during transport are classified as ___ sales.

Intra-State

What is the procedure for a dealer to obtain CST registration?

The dealer must apply in Form A to the relevant state authority, provide necessary documents, and obtain a Tax-Payer Identification Number (TIN).

True or False: Sales tax on inter-State transactions can be levied by State Governments.

False. Only the Central Government can levy tax on inter-State transactions.

Describe the implications of Section 5(1) of the CST Act regarding sales in the course of export.

Sales Occur During Export

• Includes document transfers.

• Applies after customs clearance.

• Validates export sale transactions.

What are the essential conditions required for a sale to be classified as an inter-state sale under the Central Sales Tax Act?

Three conditions for inter-state sale.

• Contract must specify inter-state.

• Goods must move between states.

• Sale causes the goods' movement.