Introduction NOTES ON CENTRAL SALES TAX
Sales Tax is a state subject. Entry 92A of List I and entry 54 of List II of the constitution of India demarcates the power of Central Govt. and State Govt. to levy tax on sale of goods.
Entry 92A of List I empowers Central Govt. to levy taxes on the sale and purchase of goods other than newspaper, where such sale or purchase takes place in the course of interstate trade or commerce. Thus legislation in respect of interstate transactions, exports and imports is a prerogative of the parliament.
The Central Sales Tax Act 1956 extends to whole of India. Therefore interstate movement of goods from and to any part of India as a result of trade, commerce and other business activity, export of goods from any part of the India and import of goods in any part of India would be governed by the Central Sales Tax 1956.