Basic aspects of CST Inter state sales and stock transfer
Tax on sales by Union and State Governments :
Sale tax on Inter State sale is levied by Union Government under Entry 92A of List I (Union List), while sales tax on intra-State sale (sale within State) (now termed as Vat) is levied by State Government under Entry 54 of List II (State List) of Seventh Schedule to constitution of India.
Categories of sales :
Sales can be broadly classified in three categories. (a) Inter-State Sale (b) Sale during import/export (c) Intra-State (i.e. within the State) sale. State Government can impose sales tax only on sale within the State.
Basic aspects of CST Inter state sales and stock transfer Basic aspects of CST Inter state sales and stock transfer
State cannot discriminate between local goods and goods from outside State:
State cannot discriminate between goods manufactured/produced within the State and goods brought from outside the State i.e. tax on local goods and goods from other States must be same.
Rate of CST :
CST is payable on inter-State sales @ 2%, if C form is obtained. No CST if form H or I is obtained from purchaser. Otherwise, CST rate is same as applicable for sale within the State.
Revenue of CST goes to State Government :
Even if CST is levied by Union Government, the revenue goes to State Government. State from which movement of goods commences gets revenue. CST Act is administered by State Government.
Basic aspects of CST Inter state sales and stock transfer,
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