CST Full Form- Central Sales Tax

What is CST? The full form of CST is Central Sales Tax. The tax imposed on sales made during interstate trade and commerce within a nation is known as the Central Sales Tax. Essentially, it's the tax that must be paid on items traded through interstate commerce. Central Sales Tax (CST) is an origin-based indirect tax that is levied on consumers in the state in which a certain product is sold. Only transactions involving the transfer of products between states are subject to CST; import/export of goods and transactions inside a state are not. Since its introduction in the sixth Constitutional Amendment, it has been an essential part of the nation's tax system.

The Features of CST

• The tax imposed on the sale of products and services is known as the central sales tax. The CST was imposed by the Indian Central Government.
• Sales that take place inside a state or that involve the import or export of goods are not subject to the Central Sales Tax.
• It solely pertains to interstate commerce. Each state's sales tax administration keeps an eye on it.
• The state in which trading takes place is where central sales tax must be paid.
• The same will be retained by the state that is in charge of collecting the central sales tax on interstate commerce.
•  The sales tax officer is responsible for assessing and collecting central sales tax. They may be thought of as an indirect levy imposed on the clients. It is relevant across India.
• In order to conduct interstate trade transactions, dealers must be registered dealers and show their certificate of registration at each location where they conduct business.
• They don't offer a cap on exemptions.
• Commodities are divided into declared commodities and other goods under the CST Act. Compared to other items, declared goods are subject to reduced taxes.