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Cst,Central Sales Tax
CST (Central Sales Tax)
The Central Sales Tax (CST) is a indirect tax levied in India on the sale of goods and services by businesses located in the country. It is a concurrent tax, meaning that it is levied by both the central government and state governments.
Rate of CST:
- The standard rate of CST is 18%.
- However, there are some exemptions and reduced rates for certain items and businesses.
** applicability:**
- CST is applicable to all taxable persons whose turnover exceeds the threshold limit of Rs. 1 crore in a financial year.
- It is also applicable to persons who are required to register under the Central Goods and Services Tax Act (CGST).
Modes of Payment:
- CST is payable monthly or quarterly, depending on the turnover of the business.
- Payment can be made through electronic banking or challans.
Refunds:
- CST is eligible for refund if the business is registered under the CGST Act and has paid more tax than due.
Exemptions:
- Some items, such as food grains, seeds, and medicines, are exempt from CST.
- Certain businesses, such as small businesses and agricultural producers, are also exempt from CST.
Compliance:
- Businesses are required to register for CST if their turnover exceeds the threshold limit.
- Businesses are also required to file monthly or quarterly returns, as applicable.
Key Points:
- CST is a concurrent tax levied in India on the sale of goods and services.
- The rate of CST is 18%, but there are exemptions and reduced rates.
- CST is applicable to all taxable persons whose turnover exceeds the threshold limit of Rs. 1 crore.
- The tax is payable monthly or quarterly.
- Businesses are required to register for CST and file returns.