Levy and collection of tax under CST NOTES ON CENTRAL SALES TAX
Levy and collection of tax under CST:-
Even though the Act is called as the Central Sales Tax Act taxes are levied under the Act by the concerned State Governments and collected by them and they retain the full amount collected under CST.
Concerned State Sales Tax law is applicable in relation to return, assessment, appeals, recovery, etc. It is matter of interest that only 24 sections are there in the CST Act. Under the CST Act the right to tax a sale in the interstate trade is conferred on the State from where the movement of goods commences.
Such state is defined as an “Appropriate State” in the Act. Thus in the state of Maharashtra interstate transactions are regulated as per the provisions of CST Act 1956, the rules made there under , as per the provisions of Bombay (Registration and Turnover) Rules 1957 , notifications issued under sec.8(5) of the CST Act and the circulars issued by the Commissioner.