inter state sales

2. The CST Act, 1956 was introduced to
tax the inter-state sale or purchase in
India .
Moreover it also considers the sales in
course of import into or export from
India.

3. Under CST Act various principles have
been formulated to determine the
nature of sale under 3 situations:
when a sale or purchase of goods is
said to take place –
1. in the course of import or export.
2. outside a state.
3. in the course of import or export.

4. A sale could be said to be in the course
of inter state trade only if two conditions
concur:
(a) a sale of goods
(b) movement of those goods from one
state to another under the contract of
sale.

5. *The central govt. makes rules and
regulations regarding tax on goods in
the case of interstate sales , sales in
the course of import and export.
*But the state govt. has the powers to
levy tax in the case of intra-state sales.

6. An inter-state sale is said to take place
in two ways:
1. by direct inter-state sales.
2. by transfer of documents.

7. Goods sent by value payable post. Sale to
consumer in other state.
Mode of transport –immaterial.
Sales by auction and subsequent
movement of goods to other state.
Distinction between movement caused
by terms of contract and movement
caused by necessary incident.
Occasions the movement of goods.
Situs of sale – immaterial.

8. Intra state sales.
Branch and consignment transfer.
Import and export of sales or purchases.
Sale through commission agent/ on
account sales.

9. SUBMITTED TO: NAMIT SIR
BY: B. COMII
Gunjan(11035)
Pragati (11019)
Mini roy(11115)

10. SUBMITTED TO: NAMIT SIR
BY: B. COMII
Gunjan(11035)
Pragati (11019)
Mini roy(11115)