CST Stands For Central Sales Tax in inter State purchases
have charge of vat and purchase of relating from other
states charge duty CST Instead Of Vat.
In India there are 35 States and Union Territories. If the
purchases or sales are between two dealers within the
state/Unior Territory i.e. both seller or buyer are in same
stateUnior Territory the business transaction will be
called as intra-state transactions i.e. local purchase or
local sales.
If a dealer sells or purchases goods from a dealer outside
the state the purchases or sales will be called inter-state
purchases or inter-state sales and such transactions will
be assessed under the Central Sales Tax Act 1956. Thus the
transactions between two dealers from different states were
governed by Central Sales Tax Act 1956 and tax levied on
such transactions is called Central Sales Tax i.e. CST.
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