Central State Tax (CST) is an indirect tax paid by consumers on inter-state sales of goods by registered dealers. CST is levied by the Central Government on the taxable turnover from such inter-state sales made in the ordinary course of business. To be liable for CST, the assessee must be a dealer making inter-state sales under sections 3(a) or 3(b) of taxable goods, with CST only applying to the net inter-state sales amount. Certain sales are exempt from CST, such as those for export, import, subsequent sales, and sales to special economic zones.

1. C S T
Miljo Mathew(15CO50133)
M com 2nd Year

2. CST
Central State Tax (CST) is an indirect tax which is paid
ultimately by the consumer of the product. CST is levied by the
Central Government on taxable turnover of inter-state sale of
goods made by registered dealer in ordinary course of business.

3. Who is liable to pay CST??
Sec6(1) reveals that,
 Assessee should be a dealer.
 Sales should be inter state.
 Only sales U/s 3(a) or 3(b).
 Cst only on Net inter state sale.
 No CST on electrical energy.
 Rate of CST.

4. Exemptions from CST
 Sale in the course of export. Sec5(1)
 Sale in the course of import. Sec5(2)
 Penultimate sales. Sec5(3)
 Subsequent sales. Sec6(2)
 Exemptions to suppliers to foreign union. Sec6(4)
 Exemptions from notification. Sec8(5)
 Sale to SEZ. Sec8(6,7,8)

5. Sale out side the state
Section 4.
sec(1) defines sale out side a state stating that “subject to
provisions of section 3, when a sale or purchase is inside a state
as per the section 4(1). Such sale or purchase will be out side the
all other state.