Features of Central Sales Tax - Features of CST, Indirect Tax Laws | Indirect Tax Laws - B Com PDF Download

Features of CST Tax

The Features of CST Tax are listed below. These CST features will give a clear idea about how CST imposed on Sales and what are the CST Tax Rate 2016-17. So, It is important to know about the basic features of Central Sales Tax. Let us have a look at the Features of Central Sales Tax Act 1956 in the following section.

The Features of Central Sale Tax are:

• It extends to the whole of India.

• Every dealer who makes inter-sate sale must be registered dealer and a certificate of registration has to be displayed at all places of his business.

• There is no exemption limit of turnover for the levy of Central Sale Tax.

• Under this Act, the goods have been classified as:

  • Declared Goods or Goods of particular importance in inter-state trade or commerce and

  • Other Goods.

  • The rates of Tax on declared goods are lowered as compared to the rate of tax on goods in the second category.

• The tax is levied under this act by Central Government, but it is collected by that State Government from where the goods were Sold. The tax thus collected is given to the same State Government which collected the tax. In the case of a union territory, the tax collected is deposited in consolidated fund of India.

• The rules regarding submission of returns, payment of tax, appeals, etc. are not given in the act. For this purpose,  the rules followed by a state in respect of its own sale be followed for the purpose of this Act also.

• Even though the Central Government has framed the Central Sales Tax but, the State Governments are allowed to frame such rules, subject to such notification and alteration as it is deemed to fit.