Central Sales Tax,1956

Background of CST
 Sales Tax is one of the most important Indirect
Tax for purpose of taxation by State
Governments.

 Revenue from CST goes to State from which

movement of goods commences.
Main Objectives of CST
1. To formulate principles for determining
a) When a sale or purchase takes place in the
course of inter-state trade or commerce
b) When a sale or purchase takes place outside
a State
c) When a sale or purchase takes place in the
course of imports into or export from India
2. To provide for levy, collection and distribution of
taxes on sales of goods in the course of inter-
state trade or commerce
Main Objectives of CST (CONT...)
3. To declare certain goods to be of special
importance in inter-State trade or commerce
and specify the restrictions and conditions to
which State laws imposing taxes on sale or
purchase of such goods of special importance
(called as declared goods) shall be subject.
CST Act imposes the tax on inter state sales
and states the principles and restrictions as per
the powers conferred by Constitution.
Basic scheme of the CST Act 
 Sales tax revenue to the State
 Tax collected in the state where movement of goods takes
place
 Tax on Inter state sale of goods
 State sales tax law applicable in many aspect (In respect of
provisions like return, assessment, appeals etc., provisions
of General Sales Tax law of the State applies.)
 CST Act defines some concept(Sale Outside the State, sale
during the course of import/import)
 Declared goods (Some goods are declared as goods of
special importance and restrictions are placed on power of
State Governments to levy tax on such goods)
THANK YOU