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.
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.
The tax should be collected by the registered dealer, who sells goods in the course of inter-State trade or commerce and shall be paid by him into the Government treasury in challan No. MTR 6, before filing return, within the time, as may be prescribed by the State Government in the local Act.
A dealer, registered under Central Sales Tax Act, is liable to file periodic returns as per periodicity and due date/s as may be prescribed under the local sales tax (VAT) law.
Note: In the State of Maharashtra, there was an old circular whereby the dealers holding CST registration certificate, but not having any tax liability under the CST Act, during a period, were exempted from filing CST return/s. However, the said circular is now modified through Trade Circular No. 20T of 2014, dated 25th November, 2014. Accordingly, with effect from 1st October 2014, all those dealers having following types of transactions must file CST returns:-
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