Sales Tax Laws in India
The tax imposed on the sale and purchase of goods within the state is called Sales Tax. Different states have different sales tax laws for their states.
What is Sales Tax? Sales tax is a form of indirect tax imposed on the sale and purchase of goods within India. The seller of the goods can recover sales tax from the purchaser. It is levied by the Government. Sales tax is charged at both the levels of Legislation, Central and State. The tax imposed by the Central Government is known as the Central Sales Tax, whereas tax imposed by the states is called Sales Tax.
The Central Sales Tax (CST) is charged by the Central Government for the interstate transfers, for instance, goods transferred from Gujarat to Maharashtra. The Central Sales Tax Act, 1956 governs the provisions for administering and levy of Central Sales Tax. Any transfer within the state or export or import of any goods does not come under the purview of CST. The primary objectives for imposition such taxes are as under:
- A smooth functioning of collection and levy of taxes for interstate sales and purchases,
- Classification of goods as per their importance.
- Division of duties by delegating the functions to competent authorities.
- Simplify the procedure for continuous revenue collection
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