What is the full form of CST?
Answer: CST: Central Sales Tax
The full form of CST is Central Sales Tax. It is a type of indirect tax levied only on goods sold from one state to another state and not on sales made within the state or import/export of sales. It is governed by the Central State Tax Act, 1956. Central Sales Tax (CST) is charged by a registered dealer at the time of selling the goods outside the state in which he is enlisted. Example: “A” in Karnataka sells and delivers goods to “B” in Kerala. CST is payable in the state where the goods are sold and movement commences. The tax collected is retained by the state in which the tax is collected. This Act provides the definition of inter-state trade, describes the circumstances where CST is applicable, penalties and trade restrictions etc. CST is imposed by the central government of India but its chargeability is state-specific.
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