Central Sales Tax is a form of Indirect Tax Imposed on the “Sale of Goods” by Central Government of India. The CST Tax is applicable only in the case of “Inter-State Sales“ made within the state or import/ export of sales. CST is similar to VAT but the difference is CST is levied by Sate Government and VAT by Central Government. Value Added Tax is levied by the Central Government of India on the value added to a services or product before reaching the final consumer. For more details of Central Sales Tax just go through the link. This CST Registration is same as VAT registration.
CST Registration Process
These are the necessary steps for CST registration. The Registration procedure for Central Sales Tax is Different for the Different States depending on the Sate Government.
1. An application must be made by the dealer to the State authority in “Form A” within 30 days of the day when the dealer is liable to pay the tax. These are details to be mentioned in the Forms.
- Name of the Manager of the Business.
- Name & addresses of Partner or Proprietor of the business.
- Date of establishment of business.
- Date on which first inter-state sale was made.
- Name of the Principal place and other places of business in the appropriate state.
- Particulars of any license held by the dealer.
2. Fees for Registration is Rs. 25/- to be paid in cash or court fee stamp.
3. The application has to be signed if in the case of:
- Sole proprietorship, the proprietor.
- Partnership firm, anyone the partner.
- HUF, the Karta.
- The Company, the director.
- The Government authorized officer.
4. Grant of Certificate of Registration under Section 7(3).
If the Assessing Officer (AO) is satisfied with the application and the facts contained in it then he will register the dealer in this Act. After that, the registrar will issue a Certificate of Registration in Form B to the dealer. If the dealer has more than one place of business then he will provide additional copies of certificates. All the items of Sale and purchase must be furnished in CST Registration Certificate otherwise, these are not eligible for purchase at the Concessional rate.
Online CST Registration Procedure – CST Tax e-Registration
- Log on to your State CST website and Click on the ‘Registration’.
- Fill the details and attach the relevant documents as per the request of your company.
- The State authority will allocate a temporary CST Registration Number to the Assessee.
- After the verification, a permanent CST registration number will be assigned to the Taxpayer.
- You can check your CST Application status online.
CST Registration Fees
The Registration Fees is different for different States in India. As per the State Government rules the Registration Fees will be Designed.
For Example: In the case of Maharastra State the CST Registration fee Particulars as shown here
- Chalan in Form No. 210 along with DD (Demand Draft)/ Pay Order (PO) showing payment of Registration Fee of Rs. 5000/- and Deposit of Rs. 25000/- in the case of Voluntary Registration and Rs. 500/- in other cases. However, the dealer may pay Registration Fee of Rs. 500/- by the way of Court Fee Stamp.
- For Mumbai location, the Demand Draft/ Pay Order should be drawn in favor of Bank of Maharashtra Account MVAT and DD/ PO should be drawn in favor of State Bank of India, Account MVAT, payable at respective locations.
- The fees of Rs. 25/- towards CST registration to be paid by affixing the Court Fee Stamp on’ Form-A’.
Documents For CST Registration
- A Copy of PAN Card of the Company.
- A Copy of Certificate of Incorporation, Memorandum & Articles of Association of the Company.
- List of directors of the Company.
- The Copy of Identity Proof of all the directors of the Company (Copy of PAN card is Preferable).
- Proof of place of residence of the directors of the Company (like Passport, Driving License, Electricity bill, Maintenance Bill, Voter ID (two address proofs are required).
- A Copy of Board of Directors resolution authorizing the authorized signatory for filing the application for registration, application for registration.
- ID Proof & Address Proof of the authorized signatory.
- 2 latest passport size photograph of the authorized signatory.
- Proof of ownership/ tenancy/ lease of the premises of the place from where business is being carried out along with Id Proof & Address Proof of the Lessor.
- Details of all the places of business including branches and godowns within the state as well as outside the state.
- POA (Power of Attorney) in favor of a person to file the documents and represent before the department for registration.
- Photocopy of the Bank Statement of the Company.
- An Original Copy of Cancelled Cheque.
- List of major goods to be traded.
Check CST Registration Status
- Visit State CST registration website.
- Enter all your credentials or CST number.
- The CST status and dealer status will hence be given to you (Assessee).
CST Transaction Forms
Dealers/ Traders/ Exporters/ Manufacturers during transaction have to issue certain proclamations in the prescribed form to the buyers/ Sellers. These forms are to be prepared in Triplicate and these forms are printed and supplied by the Sale Tax Department. These are some of the Important Central Sales Tax Forms.
CST Form C:
The Rate of Sales Tax on inter-state sale is 4% or the sales tax applicable on sales within the state whichever is lower if the sale is to a dealer registered under CST and the goods that are covered in the registration certificate of the dealer. The purchasing dealer is eligible to get these goods at the concessional rate if a declaration in “Form C” is submitted to the selling dealer. C Form is issued by the purchasing dealer (other than Government) to the Selling Dealer.
CST Form D:
Issued by the Government Department which purchases the Goods. But is removed with effect from 1-04-2007.
CST Form E1:
This Form is issued by the dealer who makes the 1st Inter-State sale during the movement of goods from one state to another.
CST Form E2:
This Form is issued by the second or the subsequent seller when the goods move from one state to another in a series of inter-state sales by transfer of documents of title.
CST Form F:
This Form is issued when the goods are dispatched to another state as a consignment or a branch of a dealer in another state. Issued by branch transfer or stock transfer to his principal dealer.
CST Form H:
This form is issued by an exporter for the purchase of Goods.
CST Form I:
This form is issued by a dealer located in “Special Economic Zone (SEZ)”.