GIST OF AMENDMENTS TO CST ACT, 1956

BY

TAXATION LAWS (AMENDMENT) BILL, 2007

 With effect from 01/04/2007 

• Section: 006(2) – Conditions for subsequent Inter State sale in transit - Sub Section substituted deleting provisions relating to subsequent inter state sale in transit to Government

• Section: 008 - Rate of tax on sale in the course of inter-State trade or commerce -   

• Sub Section (1) substituted reducing the rate of tax (to 3% or such lower rate of tax on sale of goods in the State) against form C to registered dealers and deleting provision for sale to Government at concessional rate of tax

• Sub Section (2) substituted providing for levy of CST at the rate of tax applicable to the sale of goods in the State where the sale is not covered by sub section (1)

• Sub Section (3) amended deleting reference to clause (b) of Section 8(1) deleted consequent to substitution of Section 8(1) without any sub clause

• Sub Section (4) - Sub Section substituted deleting provisions relating to inter state sale at concessional rate of tax on sale to Government 

• Sub Section (5) - Sub Section amended deleting provisions relating to powers of State Government to notify concessional rate of tax on sale to Government         

• Section: 014 - Certain goods to be of special importance in inter-State trade or commerce - Entry (ix) relating to Tobacco and tobacco products deleted

Amendments in following sections consequent to amendment to Section 8 and 6

• Section: 007(2A) (Registration of dealers) –  Section: 009 (1)  (Levies and collection of tax and penalties), Section: 010 (Penalties), - Section: 010A (2) ( Imposition of penalty in lieu of prosecution)