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 |
CAclubindia
