Basic difference between CST, Central Excise and Customs

CA Anand Sarda (Working) (1580 Points)

22 January 2008  
 

Basic difference between CST, Central Excise and Customs

Particulars CST Central Excise Customs
Basis of charge It is a tax on sale of goods in India Manufacture of goods in India Import or Export of goods to India
Classification of goods CST classify goods on interstate sale & state sales tax classify as per the particular state Classify goods for the purpose of levy & rates of duty Classify goods for the purpose of levy & rates of duty
Taxable event Sale of goods in interstate trade or commerce Production or manufacturing of goods in India Entry inward of goods or outward of goods from India
Collection Power CST is levied by the central govt. but collected & returned by respective state govt. Most of the products are levied by central govt. except on alcoholic liquors, OPM, Indian hemp. Above are even levied & collected by state govt. It is levied, collected and retained by central govt.
Values Sales tax is charged on sale price Excise duty is levied on accessible value It is levied on accessible value
Rates of Tax CST is 4% is uniform by rates of state sales tax varies Basic excise duty is uniform @ 16% Customs duty rates irrespective of goods is uniform @ 20%
Time of Payment It is payable after the sale takes place It is payable on removal of goods from factory or godown It is payable on or before customs clearance