CST full form is Central Sales Tax. CST is a form of indirect tax which is imposed on goods sold from one state to another. CST is put by one state’s seller on products sold to another state’s purchaser. The Central State Tax Act of 1956 covers CST. The Act decides Inter-state trade, the situations in which CST is applicable, sanctions and trade restrictions are outlined, etc.
The Central Government of India charges CST, but its playability is state-specific.CST is an indirect & origin-based tax since it is regulated by the state in which the transaction originates & payable in the state wherein the product is sold. It is for inter-state transactions only. It does not refer to products sold within a state and to products being manufactured or exported.
In our country, some states have a VAT system while there are some states who have taxes on sales/purchases called Sales Tax/VAT, etc. In some states, both of these systems exist while some have only one of them.
Due to the lack of uniformity in the taxation system throughout India, various problems arise while selling goods from one State to another State due to variation in rates of taxes on purchase/sales between States.
This creates impediments to the free flow of goods throughout the country. To remove this impediment, the Government of India imposed CST so that goods could be sold freely all over India irrespective of variations in tax rates between States.
CST is a form of indirect tax which is imposed on goods sold from one state to another. CST is put by one state’s seller on products sold to another state’s purchaser.
|CST||1. Central Sales Tax, 2. Chhatrapati Shivaji Terminus, 3. Central Standard Time|
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