16.CENTRAL SALES TAX ACT Name of the Act: The Central Sales Tax
Act, 1956. The Act extends to the whole of OBJECTIVES OF THIS
ACT a. To give out the principles for determining Inter State
Sale (ISS) or b. Provide for the levy, collection and
distribution of taxes on sale of goods in the course of inter-
State trade. c. Declare certain goods to be of special
importance (Called Declared goods). d. Specify the restrictions
and conditions on state laws imposing taxes on declared goods.
e. To provide for collection of tax in the event of liquidation
of a company. FEATURES OF CST ACT a. It states that every dealer
who makes an ISS must be a registered dealer. b. Such dealer,
who makes an Inter State Sales, is liable to pay Central Sales
Tax. c. Sec.3 explains when the sale of goods will be called an
ISS. d. It explains what is an import and export sale. e. Sec.4
explains when a sale will be outside all other States. f.
Normally CST is charged at a single point, but in some cases
there can be multiple point tax on ac