Hence in pursuance of this the Central and Sales Tax, 1956 was enacted which governs the current Central Sales Tax system.Ĭentral Sales Tax is levied by the Central Government of India under Entry 92A of List I (Union List) of the Seventh Schedule to the Constitution on India but, it is collected by that state government from where the goods were sold. According to Article 266 of the Constitution of India no tax can be levied on a person until or unless it is backed by a law.

The amendment brought the taxes on purchases or sales of goods in the course of inter-State trade or commerce expressly within the purview of the legislative jurisdiction of Parliament and restrictions could be imposed on the powers of State legislatures with respect to the levy of taxes on the sale or purchase of goods within the State where the goods are of special importance in inter-State trade or commerce. The sixth amendment in the Constitution of India changed the scenario of taxation in India by introducing the Central Sales Tax (hereinafter referred as CST). This article is written by Tanay Khanna, a student of NLUO, on Central Sales Tax and its registration procedure.

What is cst