Interstate subsequent sales

Liability to Central Sales Tax

        Central sales tax is levied on inter-state sales. However second or subsequent sale in continuous chain is exempt subject to certain condition.

No tax is payable on export sales or sales out side the State.

Rate of Tax

        (1) Where under the local sales tax law sale or purchase of any goods is exempt tax generally the rate of C.S.T. will be Nil.

        (2) Where on sale or purchase under the local sales tax law, the tax at a rate lower than 4% is payable, the rate of C.S.T. will be the applicable lower rate.

        (3) Where the inter-State sales of goods, not covered under(1) Or (2) above, is effected to Government against from ‘D’ the rate of C.S.T. will be 4%.

        (4) Where the inter-State sale is effected to a registered dealer against form "C" and the case is not covered by (1), (2) or (3) above, the rate of C.S.T. will be 4%.

        (5) In respect of inter-State sales of "Declared Goods", otherwise than against form "C" or "D" the rate of C.S.T. will be at twice, the rate of tax applicable to the sale or purchase of such goods in the appropriate State.

        (6) Where inter-State sales is not covered by (1) to (5) above, the rate of C.S.T. will be 10% or at the rate applicable to the sale or purchase of such goods inside the appropriate state whichever is higher.