Full formGovernment & Exams
CSTstands forCentral Sales Tax
Full Form of CST
What is CST?
Central Sales Tax (CST) is a tax levied on the sale of goods that take place across state borders within India. It was introduced under the Central Sales Tax Act, 1956, to regulate interstate trade and ensure that states receive revenue from transactions that involve multiple jurisdictions. CST is typically collected by the seller in the state where the goods originate, and the proceeds are allocated to the originating state. This tax was a major source of revenue for state governments before the implementation of the Goods and Services Tax (GST) in 2017. However, with the rollout of GST, CST was largely subsumed, except for a few items like petroleum products and alcohol, which are still subject to CST. Businesses engaged in interstate sales must register for a CST number and file periodic returns. In an exam context, CST is a crucial topic for aspirants of UPSC, state civil services, and commerce-related examinations due to its historical significance and role in India's indirect tax system. Understanding CST helps in grasping the evolution of tax reforms and the shift to GST.
CST का फुल फॉर्म
केंद्रीय बिक्री कर
Example
The manufacturer in Maharashtra charged 2% CST on the invoice for the machinery sold to a dealer in Rajasthan.
CST — frequently asked questions
What is the full form of CST?
The full form of CST is Central Sales Tax, a tax levied on the sale of goods across state borders in India under the CST Act of 1956.
Is CST still applicable in India after GST?
No, CST was largely replaced by GST from July 1, 2017, but it still applies to specific items like petroleum products, alcohol, and lottery tickets.
Who needs to register for CST in India?
Any business involved in the inter-state sale of goods must register for a CST number with the state's sales tax department and file returns accordingly.