Expand your knowledge about CST registration to run your business smoothly. Read the article for details.

Central State Tax or CST is an indirect tax that is levied by the Central Government on interstate sale of goods. This implies that central state tax is implemented when the movement of goods from one State to another is taking place. Along with this the transfer of title of goods from one State to another also comes under the jurisdiction of CST. However no sale taking place is considered in the case when a particular company is shifting a product owned by it from its branch in one state to another. Thus CST is not applicable in this case as it is not sale but movement of goods from one place to another. To be most precise, CST is a Tax on sale and is levied on the cases where sale is taking place.

There are a lot of entrepreneurs, whose business do not involve the interstate sale of goods,but they opt for a voluntary CST registration if they come into the circle of VAT, and do not have to pay the Central State Tax. The dealers opt for it because voluntary CST registration is helpful in case the dealer imports goods from another state to sale withing his state.

What is Central Sales Tax Registration?

The CST registration is required for all the entrepreneurs who deal in transfer of goods from one state to another, in other words who come under the jurisdiction of CST. For such entrepreneurs, VAT/TIN registration is also required.

There are a lot of entrepreneurs, whose business do not involve the interstate sale of goods,but they opt for a voluntary CST registration if they come into the circle of VAT, and do not have to pay the Central State Tax. The dealers opt for it because voluntary CST registration is helpful in case the dealer imports goods from another state to sale withing his state.

By filling Form C, you are liable to attain a concession in the rate of taxes that are levied on interstate purchases of goods. Benefits may be acquired by issuing Form H under section 5(3) of the CST Act.

If you are involved in transfer of goods from one branch to another or stock transfer you can get yourself spared from paying CST by submitting Form F

The experts of market often suggest CST registration to the concerned dealers. This ensures security and legal immunity of the business. These days CST registration is pretty simple to obtain and can be applied for online. If you wish to apply for CST registration or for any other kind of registration or query, log in to eFilingPortal.in