Central Sales Tax returns in India|e-filing income tax returns and file income tax return online

Sales Tax

Sales Tax

Basic Definition

The Central Sales Tax (CST) is a levy of tax on sales, which are effected in the course of inter-State trade or commerce. According to the Constitution of India, no State can levy sales tax on any sales or purchase of goods that takes place in the course of interstate trade or commerce.

  • Rates for:
    • VAT: 31 States including Union Territories
    • Entry tax: 19 States
    • Sales tax: 30 States including Union Territories
  • Number of commodities identified: 12,500 plus
  • Number of Notifications: 3000 plus
  • Number of cases (Commodities): 1450 plus

 

CST Transaction Forms:

All dealers need to follow certain guidelines and give declarations in prescribed forms to the buyer. Sales Tax authorities print and supply different forms for various purposes, each form being listed below.

  • Form C – This form allows the purchasing dealer to get goods at concessional rates from the seller.
  • Form D – This is issued by the government department which purchases the goods.
  • Form E1 – This is issued by the dealer who initiates the inter-state movement of goods.
  • Form E2 – This is issued by the subsequent seller when the goods move from one state to the other.
  • Form F – This is issued when the goods are sent on consignment or on branch transfer to a different state.
  • Form H – This is issued by an exporter for the purchase of goods.
  • Form I – This is issued by dealers in Special Economic Zones.

 

Sales Tax Exemptions:

States offer tax emptions in certain cases, which can be humanitarian or to avoid double taxation.

  • Sellers with genuine state resale certificates are exempted from tax when they resale products.
  • Products sold to charities or schools are provided tax exemptions.
  • There are a list of essential and local commodities which are exempted from sales tax.