Sr. No.	Act	Date of enforcement
1.	The C.S.T. Act, 1956 (74 of 1956)	1-7-1957
2.	The C.S.T. (Amendment) Act, 1957 (16 of 1957)	1-7-1957
3.	The C.S.T. (Amendment) Act, 1958 (5 of 1958)	1-4-1958
4.	The C.S.T. (Second Amendment) Act, 1958 (31 of 1958)	1-10-1958
5.	The Repealing and Amendment Act, 1960 (58 of 1960)	26-12-1960
6.	The Finance Act, 1961 (14 of 1961)	1-7-1961
7.	The C.S.T. (Amendment) Act, 1963 (8 of 1963)	1-4-1963
8.	The Finance Act, 1966 (13 of 1966)	1-7-1966
9.	The Finance Act, 1968 (19 of 1968)	1-4-1968
10.	The C.S.T. (Amendment) Act, 1969 (28 of 1969)	1-7-1969
11.	The C.S.T. (Amendment) Act, 1972 (61 of 1972)	1-4-1973
12.	The Finance Act, 1974 (56 of 1974)	20-11-1974
13.	The Repealing Amending Act, 1974 (56 of 1974)	20-12-1974
14.	The Finance Act, 1975 (25 of 1975)	1-7-1975
15.	The C.S.T. (Amendment) Act, 1976 (103 of 1976)	7-9-1976
16.	The Repealing and Amending Act, 1978 (38 of 1978)	26-11-1978
17.	The Finance Act, 1988 (26 of 1988)	13-5-1988
18.	The Finance Act, 1989 (13 of 1989)	12-5-1989
19.	The Finance Act, 1996 (33 of 1996)	28-9-1996
20.	The Finance Act No. 2 of 1996	1-10-1996
21.	The Finance Act No. 10 of 2000	1-4-2000
22.	The Finance Act, 2001 (14 of 2001)	11-5-2001
23.	The C.S.T. (Amendment) Act, 2001 (41 of 2001)	11-9-2001
24.	The Finance Act, 2002 (20 of 2002)	11-5-2002
25.	The Finance Act, 2003 (32 of 2003)	14-5-2003
26.	The Finance Act, 2004 (23 of 2004)	10-9-2004
27.	The Finance Act, 2005 (18 of 2005)	13-5-2005
28.	The Finance Act, 2006 (21 of 2006)	18-4-2006
29.	The Taxation Laws (Amendment) Act, 2007 (16 of 2007)	1-4-2007
30.	The Finance Act, 2007	11-5-2007
31.	The Finance Act, 2010	9-5-2010
32.	The Finance Act, 2011	8-4-2011
33.	The Finance Act, 2016	14-5-2016
34.	The Taxation Laws (Amendment) Act, 2017	4-5-2017

Useful information under the C.S.T. Act, 1956

Nature of goods	Under Form	Rate of CST
Rate of tax:
(A) With C form : 1-6-2008 to date: All goods [S. 8(1)] 1-4-2007 to 31-5-2008:	C C	2% or local rate, whichever is lower
All goods [S. 8(1)]		3% or local rate, whichever is lower
Note: D form abolished w.e.f. 1-4-2007 With C/D form : 1-7-1975 to 31-3-2007:	D C
(1) All goods [S. 8(1)(a)]		4% or local rate, whichever is lower
(2) All goods [S. 8(1)(b)]
(B) Without C/D form :
(1) Declared goods
(a) [S. 8(2)] 1-4-2007 to date		At rate applicable under local law
(b) [S. 8(2)(a)] 1-7-1975 to 31-3-2007		Twice the rate applicable to local sales
(2) Other than Declared goods/Schedule C goods (a) W.e.f. 1-4-2007
If local rate is nil (unconditionally) In any other case		Nil
(b) W.e.f. 11-5-2002 to 31-3-2007		At rate applicable under local law
If local rate is nil (unconditionally) If local rate* is or less than 10%. If local rate* is more than 10%		Nil 10%
* Turnover Tax & Surcharge shall form part of local rate for the above purpose. However from 1-4-2005, TOT and SC have been abolished.		Equal to such local rate
(c) From 31-3-1999, 5 p.m. to 10-5-2002
(i) Where Schedule rate of ST is:—
- Up to 4%	❖	Such lesser rate without TOT and SC [S. 8(5)]
- Above 4%		10% or local rate, whichever is higher
* Turnover Tax and Surcharge shall form part of local rate for the above purpose.
(ii) Where by notification u/s. 41, rate of tax including TOT and Surcharge, if any, is:
- up to 4%	❖	Such rate [S. 8(5)]. 10% or local rate,
- Above 4%
(iii) 8(5) Notified Goods	❖	whichever is higher Notified rate
* Turnover Tax and Surcharge shall form part of local rate for the above purpose. However from 1-4-2005, TOT and SC have been abolished.
(d) 1-7-1975 to 31-3-1999, 5 p.m.
(i) Where Schedule rate of ST is:
— less than 4%	❖	Such rate [S. 8(2A)] up to 30-9-1995: 10%
— 4%	❖	From 1-10-1995 to 31-3-1999, 5 p.m.: 4% [S. 8(5)].
— Above 4%	❖	10% or local rate, whichever is higher.
(ii) Where, by notification u/s. 41, rate of ST is:
— less than 4%	❖	Such lesser rate [S. 8(2A)] up to 30-9-1999: 10%
— 4%	❖	From 1-10-1995 to 31-3-1999, 5 p.m.: 4% [S. 8(5)].
— Above 4%	❖❖	10% or local rate, whichever is higher.
(3) Form I — Issued by a SEZ Dealer for the purchase of goods to be used in the activities as specified in section 8(b) {vide the CST (Registration and Turnover) Second Amendment Rules, 2003 — Notification No. 24/2003-STF No. 31/72/2002 ST)
(c) 1-7-1975 to 31-3-1999, 5 p.m.
(i) Where Schedule rate of ST is:
— less than 4%	❖	Such rate [S. 8(2A)] up to 30-9-1995: 10%
— 4%	❖	From 1-10-1995 to 31-3-1999, 5 p.m.: 4% [S. 8(5)].
— Above 4%	❖	10% or local rate, whichever is higher.
(ii) Where, by notification u/s. 41, rate of ST is:
— less than 4%	❖	Such lesser rate [S. 8(2A)]. up to 30-9-1995 : 10%
— 4%	❖	From 1-10-1995 to
		31-3-1999, 5 p.m.: 4%
		[S. 8(5)].
— Above 4%	❖	10% or local rate,
		whichever is higher.

❖❖ Notification Nos. CST-1095/CR-62-A and 62-B/Taxation-2 dated 2/2/1996. The CST rate will not be enhanced by TOT and AT up to 30-9-1995.

❖   Notification No. CST-1095/CR-62-C/Taxation-2 u/s 8(5), dated 2-2-1996, the CST will be as per schedule rate up to 4% and at Notification rate up to 4% even without Form C/D. Also refer Trade Circular No. 11T of 1999, dated 10-5-1999.

Notes : TOT=Turnover Tax, SC=Surcharge, AT=Additional Tax.

   I.  Court fee stamps for obtaining 'C', 'H', 'F' forms (1-10-2005 to 31-1-2009)

Type of forms	Fees per form in ₹
C, H, F	3
E-I, E-II	1

One declaration in Form C and certificates in Forms H, E-I and E-II will cover all transactions in a period of three months (calendar quarter) from the year 2006-07.

The dealer needs to issue three Forms (except F form) for April to September 2005, October to December 2005 and from January to March 2006 in the year 2005-06.

No application for issue of Declaration forms for the period prior to 31-3-2008 shall be accepted after 1-5-2010.

From 1-2-2009 Declaration forms application will be accepted online only. No charges will be levied for issuance of such Declaration forms. The Declaration forms will be delivered through courier only. No hand delivery of forms issued. No correction of forms is possible. You have to submit the same for cancellation and New Forms need to apply with corrected details.

W.e.f. 1-2-2014, procedure for application for all declaration forms is changed. Now, e-application (SOR) has to be made for CST e-declaration electronically and same shall be issued electronically. The applicant need to give transaction wise details for which declarations are requested. Refer Trade Circular No. 4T of 2014 dated 28-1-2014 for detailed procedure. An online application for declaration can be made pertaining to period from 1-4-2008 onwards.

Important Forms under the C.S.T. Act, Rules and Notifications

Particulars	C.S.T. Form	Time Limit
Registration :
Application for Registration	A	(i) 30 days from the date of liability u/s. 3.
		(ii) 30 days from the date of transfer of business u/s. 44(4).
		(iii) 60 days in case of succession upon death of the dealer u/s. 44(1).
		(iv) 30 days for additional place.
Documents :
Bond for surety for obtaining documents/C form duplicate	G	–
Returns and Payments:		(Please refer to Chart for filing of returns on page No. 18)
Challan for payment of tax, otherwise than with returns
(Form IIIE is substituted by MTR-6 w.e.f. 5-2-2010)

 

Particulars	C.S.T. Form	Time Limit
(Form IIIB was substituted by III-E w.e.f. 14-3-2008)	MTR-6	—
Return	III-E	—
Certificates & Declarations:
By purchasing dealer for inter-State purchases	C	—
By inter-State seller to purchasing dealer who effects sales u/s. 6(2)	E-I/E-II
By Receiving Branch/Consignment		—
Agent for Branch Transfer	F
By a purchasing Dealer to the selling Dealer who can claim exemption of sales deemed to be in the course of export out of India, u/s. 5(3) of the C.S.T. Act	H	—
By Developer of SEZ/SEZ unit	I	—
By Diplomatic Mission/Consulate,
UN and other International bodies	J	—
Appeals :	IXB	Within 60 days from the date of service of order.
Others : Declaration of Manager	VB	Within 30 days from the date of obtaining registration.

Certain important Circulars under the C.S.T. Act, 1956

  1. No penalty under C.S.T. Act for non-payment of tax if refund under the Local Act, for the same period is adjusted in the C.S.T. Returns. (MMB- 1080/231/12/ADM-3, dated 3-4-1980-27 STR 4).

 2.  Grant of exemption from filing nil returns under C.S.T. Act, 1956. (CST-1081/1497/19/ADM-3, Circular No.15 of 1981, dated 14-4-1981, 28 STR 26 and 52-T of 2007 dated 31-7-2007, 54 STR, III-185) [withdrawn/modified from 01-10-14, refer, Trade Cir. 20T of 2014 dated 25-11-14]

 3.  Issue of E-1 form u/s. 6(2) of the C.S.T. Act, 1956 by a unit holding Entitlement Certificate u/e. 136 u/s. 41 of the B.S.T. Act, 1959. (CST- 1084/8/ADM-3 Circular No. 8 of 1985, dated 17- 7-1985—32 STR 503).

 4.  Furnishing of originals (counterfoils) of declaration in C, D, F forms only for transaction over ₹ 25,000 (₹ 1,00,000 by them whose turnover exceeds ₹ 1 crore). (CST-1085/17/ADM- 3 Circular No. 11 of 1985, dated 19-12-1985, 32 STR 99).

 5.  Applicability of Amended Rule 12(1) of the C.S.T. (Registration & Turnover) Rules, 1957. C form issued after 16-10-93 can cover transactions prior to it. (MMB- 1095/12/ADM-5 Circular No. 4-T of 1995, dated 9-3-1995 - 41 STR 216).

 6.  Notification u/s. 8(5) of the C.S.T. Act, 1956 continued after 30-09-95. (CST/1095/7/ADM-3 Circular No. 28-T of 1995, dated 8-12-1995—42 STR 307).

 7.  Filing of annual return in Form III(BB) under the Central Sales Tax Act, 1956. (MMB-1095/12/ADM-3 Circular No. 23-T of 1996, dated 20-8-1996 — 43 STR 48).

 8.  Amendment to Rule 12(1) of Central Sales Tax (Registration & Turnover) Rules, 1957—Issue of Single 'C' form—limit. (CST-1096/10/ADM-3 Circular No. 20-T of 1998, dated 14-10-1998 — 45 STR 96).

 9.  Issue of C form — Amendment of the C.S.T. (Registration & Turnover) Rules, 1957 — Deletion of 2nd provisio to Rule 12(1) — Effective date (CST-1096/10/ADM-3 Circular No. 5-T of 1999, dated 4-2-1999—45 STR 172).

10.  Amendments to the C.S.T. (Bombay) Rules, 1959. (CST-1096/10/ADM-3 Circular No. 38-T of 2000, dated 9-2-2001—47 STR 238).

11.  Central Government Circular—Establishment of a mechanism to settle inter-State disputes under the C.S.T. Act, 1956—Amendments in the C.S.T. Act 19/211/96-ST, dated 10-12-2001 48 (01-02) STR-P-III-153.

12.  Establishment of a mechanism to settle the inter-State disputes under the C.S.T. Act, 1956 — Amendments in the C.S.T. Act CST-1001/18/ADM-3/B/Circular No. 13-T of 2002, dated 14-5-2002 - 49(02-03) STR-P-III-68.

13.  Amendments to the C.S.T. Act, 1956 vide Finance Act, 2002. CST-1002/9/ADM-3/B/Circular No. 15-T of 2002, dated 27-5-2002 - 49 (02-03) STR-P-III.

14.  Notifications issued u/s. 41 of the BST Act, dated 30-3-2002 and 1-5-2002 and u/s. 8(5) of C.S.T. Act, dt. 30-3-2002 and 1-5-2002. Sr. A.C./2002/16/ADM-14 Circular No. 12-T of 2002, May 2002 — STR-P-III-61.

15.  Establishment of mechanism to settle inter-State disputes under the C.S.T. Act, 1956. Amendment in the C.S.T. Act. CST-1001/18/ADM-3/B Circular No. 13T of 2002 May—STR- P-III-68.

16.  Circular No. 11-T of 2005, dated 30-5-2005 w.r.t. Sales in course of export u/s. 5(3) of C.S.T. Act, 1956.

17.  Circular No. 12T of 2005, dated 21-5-2005 of Sr. A.C. (R&A) w.r.t. Govt. Notification No. CST- 2005/CR-38/Taxation-2, dated 3-5-2005 for rates of bulk drugs @ 2%.

18.  Circular No. 16T of 2005 dated 8-8-2005 w.r.t. release of bank guarantees or securities in the form of N.S.C.

19.  Circular No. 22T of 2005 dated 28-9-2005 w.r.t. amendments to the Central Sales Tax Act, 1956 by Finance Bill, 2002 (No. 20 of 2002) made effective from 11-5-2002.

20.  Circular No. 28-T of 2005 dated 24-10-2005 for amendments to Central Sales Tax Act, 1956 (Act No. 74 of 1956) by Finance Act, 2005 (No. 18 of 2005).

21.  Circular No. 10-T of 2006 dated 29-3-2006 and Circular 17-T of 2006 dated 18-6-2006 regarding online application for statutory CST forms.

22.  Circular No. 20-T of 2006 dated 19-8-2006 and Circular 25-T of 2006 dated 12-9-2006 regarding issuance of CST TIN to dealers in certain cases.

23.  Circular No. 38-T of 2007 dated 9-5-2007 regarding amendment to CST Act.

24.  Circular No. 52-T of 2007 dated 31-7-2007 regard-ing the Central Sales Tax Act, 1956 - Grant of exemption from filing returns. Modified substantially by Trade Cir. No. 20T of 2014 dated 25-11-2014.

25.  Circular No. 70-T of 2007 dated 6-12-2007 regard-ing issue and receipt of declarations in Form C/F/H.

26.  Circular No. 14-T of 2008 dated 15-4-2008 regard-ing rate of tax under Central Sales Tax Act, 1956 from 1-4-2008.

27.  Filing of Electronic Returns (Circular No. 8-T of 2008 dated 19-3-2008, 54 STR, III-323 and Circular No. 16-T of 2008 dated 23-4-2008, 55 STR, III-76).

28.  Periodicity for filing of returns for periods on or after 1-4-2008. (Circular No. 17-T of 2008 dated 5-5-2008, 55 STR, III-81).

29.  Reduction of rate of CST w.e.f. 1-6-2008 (Circular No. 20-T of 2008 dated 31-5-2008).

30.  Procedure for online submission of application for the statutory forms under the CST Act (Circular No. 2-T of 2009 dated 23-1-2009).

31.  Extension of date for enlisting manual system for obtaining period prior to 1-4-2008 (Circular No. 12-T of 2009 dated 31-3-2009, 23-T of 2009 dated 17-8-2009 and 9-T of 2010 dated 12-3-2010).

32.  Form I under CST Act (Circular No. 19-T of 2009 dated 20-6-2009).

33.  Exemption from filing of CST return is applicable to C.S.T. e-return also. (Circular No. 15-T of 2009 dated 21-4-2009).

34.  Tax treatment of goods sent to other states. (Circular No. 2T of 2010 dated 11-1-2010 & Circular No. 12T of 2010 dt. 22-3-2011).

35.  E-payment under the CST Act. (Circular No. 10-T of 2010 dated 15-3-2010).

36.  Amendment to Ss. 6A, 18 & 25. (Circular No. 2-T of 2011 dated 17-1-2011).

37.  Validity of notification issued in respect of Motor vehicle (Circular No. 11-T of 2011 dated 12-7-2011).

38.  Procedure for submission of application for e-CST declarations and issuance electronically. (Circular No. 4-T of 2014, dated 28-1-2014)

39.  Clarification regarding inter-State purchases against C Form for period starting from 01-07- 2017 (Circular no. 47T of 2017 dated 17-11-2017)

40.  SAP based e-CST module on Maha GST portal for dealers registered before 25-05-2016 (Circular No. 04T of 2018 dated 01-02-2018)

41.  Procedure for obtaining e-CST declaration online for the periods prior to 01-04-2016 (Circular no. 11T of 2018 dated 13-03-2018)

Certain Recent Amendments to CST Act, 1956

 A. With effect from 11-5-2002

Till 11-5-2002 States were not authorised to levy tax in respect of deemed sales such as inter-State works contract or inter-State lease transactions. Therefore an amendment to the CST Act was necessary to cover such deemed sales in the course of inter-State trade or commerce. Some amendment was also necessary for facilitating levy of multipoint tax on declared goods by the State.

The salient features of the said amendments are as follows:

 1.  Definition of 'Sale' : Is amended so as to empower the Central Government to levy CST even on deemed sales enumerated in sub- clauses (i) to (vi) of section 2(g) which are (i) Compulsory Sales (ii) Works contract (iii) Hire Purchase transactions (iv) Lease transactions (v) Supply of goods by an unincorporated association of persons (vi) Food and drinks served for human consumption.

 2.  Stock transfer (Section 6A): In case of goods transferred to a 'Branch', Agent, etc., the production of 'Form F' is now made compulsory. If 'Form' is not produced, then such 'Stock transfer' will be treated as an inter-State sale and CST will be levied accordingly.

Any order passed under S. 6A(2) may be subject to reassessment by assessing authority on the ground of discovery of new facts or revision by a higher authority on the ground that the findings of the assessing authority are contrary to law.

 3.  Amendment to Section 8: (i) Production of 'Form C' or 'Form D' is made compulsory even in respect of goods attracting tax under the State law at a rate lower than 4% (but above 0%). For 'Tax Free' goods, C or D form is not required.

(ii) Similarly in case of deemed sales also the C or D form is required for each and every transaction effected to a Registered dealer or Government.

 4.  Amendment to Section 15: Section 15 is amended with a view to allow the State Governments to impose tax on declared goods at more than one stage. As a result, the States are now empowered to levy tax on sale or purchase of declared goods under the local Sales Tax Act at more than one stage. However, the restriction, as to the rate of tax not to exceed 4%, continues till 08-04-2011. From 09-04-2011, this limit is enhanced to 5%. The rate of tax under MVAT Act is enhanced to 5% w.e.f. 1-5-2011.

 5.  Amendment to Section 19: Under the newly inserted Section 19 the Central Government will constitute an authority (Central Sales Tax Appellate Authority CAA) to settle inter- State disputes falling under Section 6A or Section 9 of the CST Act. Further vide the Central Sales Tax (Amendment) Bill, 2003, sub-section (1) of Section 19 is amended and for the words, figures and letter "Section 6A or Section 9", the words, figures and letter "Section 6A read with Section 9" shall be substituted.

 6.  Amendment to Section 20: Under Section 20, the aggrieved dealer can file appeal to Central Sales Tax Appellate Authority against any order rejecting a claim u/s. 6A or 9.

Section 20(1) is substituted by the Finance Act, 2010. Now it provides for an appeal against any order passed by the highest appellate authority of a State determining issues relating to stock transfer or consignments of goods, in so far as they involve a dispute of inter-State nature.

 7.  Amendment to Section 21: Under Section 21, the procedures to be followed on receipt of appeal is provided. On receipt of an appeal, the Authority shall cause a copy thereof to be forwarded to the Assessing Authority concerned as well as to each State Government concerned, provided no appeal shall be rejected, unless an opportunity has been given to an appellant of being heard in person or through duly authorised representative, and also to each State Government concerned with the appeal, of being heard.

 8.  Amendment to Section 22: Section 22 gives the powers to the Authority. Vide the Central Sales Tax (Amendment) Bills, 2003 after sub- section 1, the following sub-section shall be inserted. "(1A): The Authority while granting stay or ordering pre-deposit of tax before the entertainment of the appeal shall have regard to the fact that the assessee has already made the pre-deposit under a local Act".

Now the word "pre-deposit" is replaced by the word "deposit" wherever it occurs in the section by the Finance Act, 2010.

 9.  Amendment to Section 25: Section 25 deals with the transfer of pending proceedings. Prior to amendment this section provided that every appeal shall stand transferred to such Authority on the date on which it is established. Vide the CST (Amendment) Act, 2003 for the words "every appeal", the words "the proceedings" shall be substituted.

 10. Amendment to Section 26: Section 26 states that the order passed by the Authority under this chapter shall be binding on the assessing authorities and other authorities created by or under any law relating to General Sales Tax Act, in force for the time being in any State or Union Territory. Vide the CST (Amendment) Act, 2003 for the words "assessing authorities", the words "assessing authorities and each State Government concerned" shall be substituted with effect from 13-5-2005.

Pursuant to amendments dated 11-5-2002 empowering States to levy tax on inter-State works contract, amendments have now been made under the Act for determination of sales price for inter-State works contract. Besides, amendment has been made to make submission of Form H u/s. 5(3) compulsory. The details of the amendments made are as under:

In Section 2 of the Central Sales Tax Act, 1956 (hereinafter referred to as the Central Sales Tax Act),

  a. In clause (h), the following proviso shall be inserted at the end, namely:

"Provided that in the case of a transfer of property in goods (whether as goods or in some other form) involved in the execution of works contract, the sale price of such goods shall be determined in the prescribed manner by making such deduction from the total consideration for the works contract as may be prescribed and such price shall be deemed to be the sale price for the purposes of this clause."

  b.  For clause (i), the following clause shall be substituted, namely:

 (i) "Sales Tax Law" means any law for the time being in force in any State or part thereof which provides for the levy of taxes on the sale or purchase of goods generally or on any specified goods expressly mentioned in that behalf and includes value added tax law, and "general sales tax law" means any law for the time being in force in any State or part thereof which provides for the levy of tax on the sale or purchase of goods generally, and includes value added tax law".

 c.  After clause (j), the following clause shall be inserted, namely:

(ja) "Works contract" means a contract for carrying out any work which includes assembling, construction, building, altering, manufacturing, processing, fabrication, erection, installation, fitting out, improvement, repair or commissioning of any movable or immovable property.

In Section 5 of the Central Sales Tax Act, after sub-section (3), the following sub-sections shall be inserted, namely:

(4) The provisions of sub-section (3) shall not apply to any sale or purchase of goods unless the dealer selling the goods furnishes to the prescribed authority in the prescribed manner a declaration duly filled and signed by the exporter to whom the goods are sold in a prescribed form obtained from the prescribed authority.

(5) Notwithstanding anything contained in sub-section (1), if any designated Indian carrier purchases Aviation Turbine Fuel for the purposes of its international flight, such purchase shall be deemed to take place in the course of the export of goods out of the territory of India.

Explanation: For the purposes of this sub- section, "designated Indian carrier" means any carrier which the Central Government may, by notification in the Official Gazette, specify in this behalf.

In Section 6 of the Central Sales Tax Act, for sub-section (3), the following sub-sections shall be substituted, namely:

(3) Notwithstanding anything contained in this Act, no tax under this Act shall be payable by any dealer in respect of sale of any goods made by such dealer, in the course of inter-State trade or commerce, to any official, personnel, consular or diplomatic agent of:

  (i) Any foreign diplomatic mission or consulate in India, or

 (ii) The United Nations or any other similar international body, entitled to privileges under any convention or agreement to which India is a party or under any law for the time being in force, if such official, personnel, consular or diplomatic agent, as the case may be, has purchased such goods for himself or for the purposes of such mission, consulate, United Nations or other body.

(4) The provisions of sub-section (3) shall not apply to the sale of goods made in the course of inter-State trade or commerce unless the dealer selling such goods furnishes to the prescribed authority a certificate in the prescribed manner on the prescribed form duly filled and signed by the official, personnel, consular or diplomatic agent, as the case may be.

In Section 13 of the Central Sales Tax Act, in sub-section (1), clause (aa) shall be relettered as clause (ab) thereof, and before clause (ab) as so re-lettered, the following clause shall be inserted, namely:

(aa) The manner of determination of the sale price and the deduction from the total consideration for a works under the proviso to clause (h) of Section 2.

In Section 24 of the Central Sales Tax Act

Transfer of pending proceedings — On and from the date when the Authority is constituted [by notification under sub-section (1) of section 24], [any proceedings arising out of the provisions contained in this Chapter]:

   i. Which is pending immediately before the constitution of such Authority before the appellate authority constituted under the general sales tax law of a State or of the Union Territory, as the case may be; or

   ii. Which would have been required to be taken before such Appellate Authority, shall stand transferred to such Authority on the date on which it is established.

  B. With effect from 13-5-2005

Amendment to Section 2(g) : W.e.f. 11-5-2002 definition of 'sale' was expanded wherein in its scope 'works contract' has also been included. However, during relevant time 'works contract' was not defined. Now expression 'works contract' is defined and it reads as follows:

'Works contract means a contract for carrying out any work which includes assembling, construction, building, altering, manufacturing, processing, fabricating, erection, installation, fitting out, improvement, repair or commissioning of any movable or immovable property'.

Amendment to Section 2(h) : The definition of 'sale price' in relation to works contract is now amended by which, proviso to the definition added so as to enable to calculate the sale price in case of inter-State works contract. Vide Circular No. 28T of 2005 dated 24-10-2005, it is clarified that since Central Government has not so far notified the required rules for determination of sale price in case of inter-State works contract, till such time the 'sale price' of an inter-State works contract will have to be determined in accordance with the principles laid down by the Hon'ble Supreme Court in case of M/s. Builders' Association of India vs. State of Karnataka & Others (88 STC 248).

Amendment to Section 5 : Sub-section (4) is added to complement the existing sub-section (3). Because of insertion of sub-section (4) to Section 5, declaration in Form H has now been made mandatory for making a deduction under sub-section (3) of section 5. Rules in this respect are amended w.e.f. 14-7-2005 and therefore any transaction which takes place on or after will have to be supported by declaration in Form H. Amendment to this extent is carried out to Rule 12(10) of the Central Sales Tax (Registration and Turnover) Rules, 1957.

Amendment to Section 5(5) : Sub-section (5) is now added to provide the sale of Aviation Turbine Fuel (ATF) to a designated Indian carrier for the purpose of international flight. For this purpose Indian Airlines, Air India, Jet Airways and Air Sahara are designated as 'Indian Carrier'. Sale of Aviation Turbine Fuel to these carriers shall be deemed to be a sale in course of export for their international flights.

Amendment to Section 6 : Sub-section (3) and sub-section (4) are substituted. It is now provided that sales to foreign diplomatic missions, consulates, the United Nation or any other similar international bodies shall not attract payment of tax. The exemption is subject to the purchaser furnishing a declaration. For this purpose declaration in Form J is prescribed by inserting sub-rule 11(A) to Rule 12 of the Central Sales Tax (Registration and Turnover) Rules, 1957.

 C. Important amendment to the Central Sales Tax (Registration and Turnover) Rules, 1957 w.e.f. 1-10-2005 : As it stood before the present amendment to Rules 12(1) & 12(9)(b), a single declaration in Forms C, E1 and E2 could cover all transactions which take place in one financial year. By amendment to said Rules, a single declaration now only covers transactions which take place in one quarter of a financial year.

Amendment to Rule 12(7) : The amendment to this rule provides that the selling dealer should furnish to the prescribed authority within 3 months of the end of the period, the declaration in Form C or Form F or Form H or the certificate in Forms EI and EII pertaining to that period. However vide Circular No. 28T of 2005, dated 24-10-2005, on administrative ground it is clarified that the selling dealer making a claim regarding sale against declarations (in Forms C, F, H, EI & EII) need not furnish the declarations to the prescribed authority. However, the dealer making such claims should furnish a list of declarations which are not received till due date, in the proforma enclosed in Annexes-1 with this circular. For the time being, the list of declarations which are not received should be furnished to the Assessing Officer in charge of the case. The list should be furnished separately for each type of declarations or certificates within 3 months after the end of the period to which the declaration or certificate relates. The said declarations should be furnished to the prescribed authority only when specifically asked for or at the time of assessment.

Amendment to Rule 12(11) : The declaration in Form I is prescribed for SEZ Units.

 D.  Insertion of Section 18A by the Finance Act, 2010

Chapter VA is added consisting of section 18A providing Appeals to the highest Appellate Authority of the State. It provides that any person aggrieved by any order made by assessing authority u/s 6A(2) or (3) may prefer an appeal to the highest Appellate Authority of the State against such order. In the said appeal, any incidental issues including rate of tax, assessable turnover and penalty may be raised. Such an appeal shall be filed within sixty days from the date on which the order is communicated to the aggrieved person.

The highest Appellate Authority shall have power to pass an order of stay on application of the appellant.

"Highest Appellate Authority of a State" means any authority or Tribunal or Court, except the High Court, established or constituted under the general Sales Tax law of a State, by whatever name called.

With effect from (date of enforcement of Finance Bill, 2016).

Explanation 3 added below Section 3 (Inserted by Finance Act, 2016)

Where the gas sold or purchased and transported through a common carrier pipeline or any other common transport or distribution system becomes co-mingled and fungible with other gas in the pipeline or system and such gas is introduced into the pipeline or system in one State and is taken out from the pipe line in another State, such sale or purchase of gas shall be deemed to be a movement of goods from one State to another.

Taxation Laws (Amendment) Act, 2017 dated 4-5-2017. Section 14 (Declared Goods) and Section 15 (Restrictions and Conditions in respect of sale or purchase of declared goods) are omitted w.e.f. 4-5-17. Special status to declared goods is withdrawn. The restrictions on the rate of tax (not to exceed 5%) and refund of local VAT when declared goods sold in the course of inter-State trade etc. are withdrawn.

Definition of 'Goods' amended-Definition of "Goods" u/s 2(d) is substituted and only following goods are included namely, (i) petroleum crude (ii) high speed diesel (iii) motor spirit (commonly known as petrol) (iv) natural Gas (v) aviation turbine fuel (vi) alcoholic liquor for human consumption. The above amendments are made in view of the constitutional amendments for introduction of GST. The amendment comes into effect from 01-07-2017.

Important Notifications u/s 8(5) of the CST Act, 1956

NOTE

Vide Finance Act, 2002, Section 8(5) was amended w.e.f. 11-5-2002. Prior to this amendment, the State Governments were empowered to grant exemption in respect of tax fully or partially without production of Form C or D.

But from 11-5-2002, the aforesaid powers of the State Government are restricted and therefore the exemptions granted under any notification issued u/s 8(5) would be available, only if such sale is effected to a dealer registered under the CST Act or to Government, respectively against Form C or D.

The Commissioner of Sales Tax, vide Trade Circular No. 15T of 2002 dated 27-5-2002 has clarified that "as a result of this amendment, any Notification u/s 8(5) of the CST Act, 1956 issued earlier to 11-5-2002 which is contrary to the newly enacted provisions, stands amended accordingly."

In the decision of M/s. Prism Cement Ltd. & Another vs. State of Maharashtra (54 VST 104) (Bom.), it is held that the notifications issued u/s 8(5) prior to 11-5-2002 would continue to grant whole or partial exemption in the same way and manner. Thus, if C form is not required under any such notification, it will not be necessary to furnish it even for the periods after 11-5-2002. It is also held that even after amendment, the State Government possesses the powers to issue notification u/s 8(5) even for the sales effected u/s 8(2) i.e., to unregistered persons/dealers.

Table No. I

Sr. No.	Concession on sale of…	Rate of CST	Effective from	CST Notification No.
1.	Agricultural Tractors	2%	10-4-1992	1092-25A-T-2 dt.10-4-1992
2.	Aluminium Rolled Products in sheets & coils forms	4%	8-10-1990	1090-30/T-2 dt. 8-10-1990
3.	Backward Area units	Nil	1-1-1980	1080-257-RES-8 dt. 5-7-1980
4.	Bicycles, Parts and Access. thereof	1%	1-1-1983	1083/46/RES- dt. 31-3-1983
5.	Bullion and Specie	0.50%	1-10-1995	1095/62-D/T-2, dt. 2-2-1996
6.	Chemicals (specified)	4%	23-3-1993	1093/7-A/T-2 dt. 23-3-1993
7.	Dimethyl Terephthalate (DMT)	0%	1-11-2001	2001/CR-77/T-2 dt. 25-10-2001
8.	Electronic Typewriting Machines	4%	10-4-1992	1092-25/B/T-2 dt. 10-4-1992
9.	Fertilisers	4%	5-3-1993	1092-101/T-2 dt. 5-3-1993
10.	Gunny Bags, Hessians and Jute Twine	4%	1-7-1981	1081-248/1/RES-8 dt. 25-6-1981
11.	Jelly filled telephone cables to MTNL etc.	4%	1-10-1998	1098/236/T-2 dt.15-10-1998

 

Sr. No.	Concession on sale of…	Rate of CST	Effective from	CST Notification No.
12.	Motor Car & Taxi Cab (950 cc to 1550 cc)	2%	1-11-1994 to 30-4-2002	1094/64/T-2 dt. 1-11-1994
13.	Motor Vehicles	4%	24-2-1992	1094/64/T-2 dt. 1-11-1994
14.	a) News Print	4%	2-8-1993	1093/19/T-2 dt. 2-8-1993
	b) Sales of News Prints by Specified Dealers	2%	1-9-1995	1095/CR-62/T-2 dt. 2-2-1996
15.	Readymade Garments	4%	1-1-1990	1089/279-T-2 dt. 5-1-1990
16.	Scientific Equipments	8%	1-4-1976	1575-1691-75-RES-9 dt. 20-2-1976
17.	Textile Dyes	4%	1-4-1993	1093 CR-7A/T-2 dt. 1-4-1993
18.	White Printing Paper to Newspapers	6%	1-7-1981	1081-248/1/RES-8 dt. 25-6-1981

Table No. II

Sr. No.	Concession on sale of…	Rate of CST	Effective from	CST Notification No.
1.	Packing Materials & Packing Accessories etc.	NIL	1-5-2002	2002/CR-30/T-2 dt. 1-5-2002
2.	Purified Terephthalic Acid (PTA)	2%	11-5-2002	2001/CR-77/T-2 dt. 9-12-2002
3.	Bulk Drugs whether imported or manufactured under licence under Drugs & Cosmetics	2%	1-4-2005	2005/CR-38/T-2 dt. 3-5-2005 & Circular 12T of 2005 dt. 21-5-2005
4.	Mobile handsets covered by entry 56 of Sch. C of MVAT Act, 2002	0.5%	17-10-2005	2005/CR-71/T-2 dt. 17-10-2005 Rescinded w.e.f. 12-02-2016 vide Noti. 2015/CR-170/T-1 dt.12-02- 2016
5.	Furnishing cloth as Notified u/entry C-101	NIL	01-04-2013	CST.1413/CR 48/Taxation-1 dt. 30-03-2013
6.	Unmanufactured tobacco except when sold in packets under a brand	NIL	16-08-2014	CST.1414/CR 54/Taxation-1 dt. 13-08-2014

Table No. III

Notifications giving concession to Organisations/Corporations, etc.

 1.  The concessions granted by notifications u/s 8(5) prior to 30-9-1995 shall be continued after 1-10-1995. (Comm. Circular No. CST/1095/7/Adm-3 No. 28T of 1995 dated 8-12-1995).

 2.  Tax payable on inter-State sales prior to 30-9-1995 not to be enhanced by additional or turnover tax. (CST 1095/CR-62-A/Taxation-2 dated 2-2-1996).

 3.  Inter-State sales of goods having general rate of tax less than 4% (whether by a notification or otherwise) will be liable to C.S.T. at such lower rate w.e.f. 1-10-1995. (CST 1095/62-B/Taxation-2 dated 2-2-1996).

 4.  Inter-State sales of goods, except Schedule B goods, having general rate of tax at 4% (whether by a notification u/s 41 or not including those subject to standard condition 1, 3 or 5) u/s 41 are liable to tax @ 4%. (CST 1095/CR-62C/Taxation-2 dated 2-2-1996).

 5.  Inter-State sales of goods to Konkan Railway Corp. Ltd. Rate of tax 4% — No. C form required (CST/1090/51/F-2 dated 5-7-1993 and CST/2000/C.R.-74/T-2 dated 3-2-2001).

 6.  Rate of CST — Nil in respect of sales of tarpaulin, tent and medicines between the period 27-1-2001 and 31-3-2001 by a dealer to non-govt. organisation authorised by the Commissioner of Relief, Gujarat State, for rehabilitation work. (CST-2001/C.R.-15/Taxation-2 dated 15-3-2001).

 7.  Concessional rate of 4% tax w.e.f. 1-10-2000 on the sales by any dealer, having place of business in the State of Maharashtra in respect of sales of all types of cables and wires required for telecommunication including jelly filled cables, copper cables and optic fibre cable and telephone cable joining kits to the Bharat Sanchar Nigam Limited, New Delhi against 'Form of Certificate' appended to the Notification. (CST No. 2000/C.R.-131/Taxation-2 dated 17-5-2001).

 8.  Exemption granted u/s 8(5) to Child Relief and You, Maharashtra Branch (Bearing Bombay Sales Tax No. 400036-S-825 and Central Sales Tax No. 400036-C-671) from payment of CST in respect of Sale of greeting cards and calendars, effected in the course of inter-State Trade and Commerce. (CST-2001/C.R-12/Taxation-2 dated 8-8-2001).

 9.  Rate of CST — NIL in respect of sales of goods made by a dealer Registered under BST-CST Act to the offices and agencies of the United Nations Organisation (UNO) specified in the list given under the Notification (CST-2001/CR-15/Taxation-2 dated 17-8-2001).

 10.  Exemption granted u/s 8(5) up to 31-3-2002 to Haffkine Bio-Pharmaceutical Corporation Ltd. from payment of Sales Tax on the sales of certain vaccines to the Govt. of India, for supply to different states extended up to 31-3-2004. (CST-2002/CR-40/Taxation-2 dated 22-5-2003).

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