 the central sales tax (amendment) bill, i9i7(as introduced in ~ sabha)  the central sales tax (amendment) bill, 1957 (as introduced in lok sabra) a billto amend the central sales tax act, 1956 be it enacted by parliament in the eighth year of the republic of india as follows:-1 this act may be called the central sales tax (amendment) short title act, 1957 5 '4 of 19'15 2 in section 8 of the central sales tax act, 1956 (hereinafter amendment referred to as the principal act), in sub-section (5), for the words of section 8 "the central government" and "any union territory", the words "the state government" and "the state" shall respectively be substituted 3 in section 14 of the principal act, after item (ii), the following ~ir;::'t~ 10 item shall be inserted, namely:-"(iia) cotton yam, but not including cotton yarn waste;" 4 for section 15 of the principal act, the following section shall spbltitution be substituted, namely:-~i:for section is is "15 every sales tax law of a state shall, in so far as it im- restrictions h· h' 't' f t th i h and condiposes or aut orises t e imposl ion 0 a ax on e sa e or purc ase tions in of declared goods, be subject to the following restrictions and regard to tax  ' on sale or conditions, namely:-purchase of declared (a) the tax payable under that law in respect of any sale goods 8 within  or purchase of such goods inside the state shall be levied only a tate at the last stage of sale or purchase and shall not exceed two per cent of the sale or purchase price at that stage; (b) notwithstanding anything contained in clause (ci), no tax shall be levied at the last stage of sale or purchase if the declared goods purchased are intended for sale in the course of inter-state trade or commerce explanation-the expression "last stage of sale or purchase" s means the stage at which a dealer registered under the sales tax law of the state-(i) sells to or purchases from another such, dealer declared goods for use by the purchaser in the manufacture of goods for sale or for use by the purchaser in the execution 10 of any contract; or (ii) purchases declared goods from another such dealer for sale to a dealer not registered under the sales tax law of the state or to a consumer in the state,"  statement of objects an~ reasonschapter iv of the central s1ik, ·j',i;~ act, 1956, declares certain commodities, which are in the nature of raw materials, to be goods of special importance in inter-state trade or commerce and lays down the restrictions and conditions as to the rate, system of levy and other 'incidents of tax subject to which the states may impose tax on the sale or purchase thereof 2 cotton yarn is essentially a raw material and is a staple support of a very important cotton industry, namely, the handloom industry it satisfies the criteria laid down by the taxation enquiry commission with regard to declaring goods to be of special importance in inter-state trade or commerce clause 3 of the bill now proposes to include cotton yarn in the list of declared goods 3 section 15 of the act as it now stands restricts the levy of tax under the state law to only one stage but leaves it to the state to select the point of levy the taxation enquiry commission had recommended that the stage of levy of tax should be the last stage of sale or purchase within a state the amendment proposed in clause 4 seeks to give effect to that part of the recommendation and at the same time to provide that no tax shall be levied under the state law at the last stage if the goods are intended for sale in the course (if inter-state trade or commerce 4 incidentally, section 8 (5) is also sought to be amended so as to enable a state government, if it so desires, to exempt any goods or class of goods from inter-state sales-tax t tkrishnamacharl new delhi; the 18th may, 1957   annexure extracts from the central sales tax act, 1956no 74 of 1956 - - - - - 8(1)   -                 -                              -                                            -                                                          - llatea of tax                     (5) notwithstanding anything contained in this section, the cen-on sales in                tral government may, if it is satisfied that it is necessary so to do in   :~~e~~:: of the public interest, by notification in the official gazette, direct that ,   trade or              in respect of such goods or classes of goods as may be mentioned in   commerce              the notification and subject to such conditions as it may think fit to              impose, no tax under this act shall be payable by any dealer having              his place of business in any union territory in respect of the sale by              him from any such place of business of any such goods in the course              of inter-state trade or commerce or that the tax on such sales shall              be calculated at such lower rates than those specified in sub-section              (1) or sub-section (2) as may be mentioned in the notification                       -                                  -                                             -                                                        -                                                                    - reatrictiodb                    15 notwithstanding anything contained in the sales tax law of ~d ~ddi-       any state, the tax payable by any dealer under that law in respect :;d8 t!,n ~-       of any sales or purchases of declared goods made by him inside the od sales or               state shall not exceed two per cent of the sale price thereof, end :d::dl of such tax shall not be levied at more than one stage in a state 1jood                            -                                            -                                                            -                                                                           •                                                                                           - 4                                ,                                 1 gipnd-ls ii-iii shift-36i ls-is-s-s7-i7so a bill to amend the central sales tax act, 1956 the president has, in pursuance of clauses (i) and (3) of article h7 and clause (i) of articl~ 274 of the constitution of india, recommended to lok sabha, the introduction and consideration of the bill m n kaul, secretary (shri t t krishnamacllari, minister of finance) 