Answer / Abhijit Burma

In India, Central Sales Tax (CST) is levied on inter-state sales of goods. If a seller from Karnataka sells engineering goods to a non-registered Delhi-based company, there will be no CST liability for the seller as the transaction involves an intra-state sale since both parties are located within the same state (Delhi). However, if the seller is required to register under the Integrated Goods and Services Tax (IGST) due to their annual turnover exceeding the threshold limit, they may still have to pay tax on intrastate sales but can claim a refund later.

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