Central Sales Tax Act, 1956
Central Sales Tax Act of 1956 administers the taxation on the sale of goods, extending to the entire country. It levies the rules and regulations related to sales tax in India. Under the CST Act of 1956, the taxes were collected and distributed by the state government where the sale took place. However, with the introduction of GST, the Central Sales Tax Act, of 1956 became ineffective in 2017. Key Components of Central Sales Tax Act, 1956:
1. Objective: The object of the CST Act was to impose and collect taxes on the inter-state sale of goods in India.
2. Authority: The CST Act authorizes the Central government to levy taxes on inter-state trade or commerce.
3. Administration: Taxes were imposed by the central government, but were collected and distributed by the state government of the state where sales took place.
4. Taxation Principles: The act levies down the principles to determine when the sale and purchase of goods take place, rates, and category of special goods, etc.
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