Professional Documents
Culture Documents
Compulsory
registration
Section 7(1)
Voluntary registration
Section7(2)
Compulsory
registration
under section 6 , dealer is liable to
pay tax in case he is performing an
inter state sale.
Section 7(1) , every dealer who is
liable to pay tax must apply for
registration . He has to register
himself with the state sales tax
authorities under the central sales
act, 1956
It is generally small amount
The dealer cant have exemption
Voluntary registration
When a dealer is registered under state
sales tax authorities.
He may voluntary want to register himself
under central sales tax act (authorities).
Dealer may register even though he is not
liable to pay tax.
Generally , this provision is useful incase a
dealer purchases interstate sale and perform
sales within the state.
So that , he may purchase at concessional
rates of tax against Form C.
Purchase
s
(interstat
e)
Voluntary
registration
(to
purchase at
concessiona
Sales
l rates)
(within
state)
Procedure for registration
Application for registration is to be made in
prescribed Form A with prescribed fees as per
central sales tax (registration and turnover)
rules within 30 days from date when dealer
becomes liable to CST.
APPLIACTION
Within 30
IN Prescribed
days when
PRESCRIBED fees
dealer liable
FORM A
The Application should be duly signed and
verified as provided under law following can sign
the application :
Type of dealer Duly signed by
Appeal to be
Additional filled
demanding
security is With in 30 days
appealable of service of the
order
To be filled
prescribed Form The appellate
and with order shall be
prescribed final
authority
Certificate of registration
Dealer will be issued a certificate of registration in
form B
A copy of certificate issued for every place of
business in the state
Certificate of registration must be kept in principal
place of business and copy of the certificates should
be kept at each additional place of business
The certificate can be amended for change name
place ,nature
But CoR is non- transferable
In case of lost or destroy of certificate , duplicate is
issued for fees charge Rs. 5
In case of rejection of the certificate by sale tax
authority , the reasons must be recorded in writing .
However , before rejection , personal hearing should
Effective date of
registration
The CST Act or Rules do not contain any
provision indicating the date from which
registration certificate to be effective.
However court judgment clarified that , the
date of registration is effective from the date
which application for registration is made ,
even if registration is granted later.
In fact , registration is made after the first
inter sate sales is effected , the registration is
effective from the date first interstate sale i.e.
earlier than the date of application
E.g. :- thus all sales / purchases made when
the application is pending are to be treated as
Cancellation of
A )registration
CANCELLATION AT THE INITIATIVE OF THE
ASSESSEEE:
A dealer may apply for cancellation of registration within 6
months before the year ends if he is not liable to pay any
tax
The cancellation of registration from the end of year and
cant be in the middle of year
B ) SUO MOTTO CANCELLATION BY THE
DEPARTMENT
Sales tax authorities may cancel registration after giving
notice if dealer
ceased to exist
Has ceased to carry on the business
Has failed to furnish additional security
Has failed to inform the death of surety
Failed to pay tax or penalty payable under the act
Offences and penalties under
CST Act
Central sales tax act provides for
penalties and punishments in respect of
certain offences
Further, in respect of offences not
provided in the CST act , provisions of VAT
law of the state where the dealer is
carrying on business are applicable
CST Act provides for three types of
punishments :
(a)Imprisonment &fine
Section 10 of CST Act provides that punishment
up to six months of simple imprisonment or with
fine or both can be imposed for following offences
under CST Act
Knowingly giving declaration in form C , E-I ,E-II ,H,I
or J which he knows , or has reason to believe , to be
false
Not regarding under CST Act when required to be
registered
False representation by a registered dealer that the
goods being purchased are covered under his
certificate of registration for concessional rate
Falsely representing that he is a registered dealer ,
though he is not
Misusing or using for different purpose the goods
obtained under C Form at concessional rate
Having in possession C forms which are not
obtained as per provisions of the Act
Compounding of
offences
The offences can be
compounded by Sales Tax
Authorities . Such compounding
can be done in respect of any
offence enumerated above , if
provisions are available in state
laws
In that case , the proceedings in
Further section 10 A of CST ACT authorities
imposition of penalty in lieu of punishment in
respect of offence regarding
(a)Obtaining goods not included in registration
certificate
(b)Purchasing goods representing that he is registered
dealer , tough he is not
(c)Using goods for purposes different than the
proposes for which purchased
()The penalty can be up to one and half time the
tax which would have be
payable.
()The penalty can be imposed by sales tax authority
having jurisdiction over the dealer s place of
business . Once penalty is imposed , prosecution
(for imprisonment/ fine) for same offence shall not
be launched
()Besides above , state laws provide for penalties
Sale Tax Authorities
Excise and Taxation
Commissioner