The Central Sales Tax Act, 1956

(1) This Act may be called the Central Sales Tax Act,1956. (2) It extends to the whole of India 1*** (3) It shall come into force on such date2as the Central Government may, by notification in theOfficial Gazette, appoint, and different dates may be appointed for different provisions of this Act.

In this Act, unless the context otherwise requires,-- (a) "appropriate State" means-- (i) in relation to a dealer who has one or more places of business situate in the sameState, that State; (ii) in relation to a dealer who has 1*** places of business situate in the different States,every such State with respect to the place or places of business situated within its territory; 2* * * * * 3[(aa) "business" includes-- (i) any trade, commerce or manufacture, or any adventure or concern in the nature oftrade, commerce or manufacture, whether or not such trade, commerce,manufacture, adventure or concern is carried on with a motive to make gain or profit and whether or not any gain or profit accrues from such trade, commerce, manufacture,adventure or concern; and (ii) any transaction in connection with or incidental or ancillary to, such trade,commerce, manufacture, adventure or concern; (ab) "crossing the customs frontiers of India" means crossing in the limits of the area of acustoms station in which imported goods or export goods are ordinarily kept before clearanceby customs authorities. Explanation.--For the purposes of this clause, "customs station" and "customs authorities" shallhave the same meanings as in the Customs Act, 1962 (52 of 1962); 4[(b) "dealer" means any person who carries on (whether regularly or otherwise) the business ofbuying, selling, supplying or distributing goods, directly or indirectly, for cash or for deferred payment,or for commission remuneration or other valuable consideration, and includes-- (i) a local authority, a body corporate, a company, any co-operative society orother society, club, firm, Hindu undivided family or other association of personswhich carries on such business; (ii) a factor, broker, commission agent, del credere agent, or any other mercantile agent,by whatever name called, and whether of the same description as hereinbefore mentioned ornot, who carries on the business of buying, selling, supplying or distributing, goods belongingto any principal whether disclosed or not; and (iii) an auctioneer who carries on the business of selling or auctioning goods belonging toany principal, whether disclosed or not and whether the offer of the intending purchaser isaccepted by him or by the principal or a nominee of the principal. Explanation 1.--Every person who acts as an agent, in any State, of a dealer residing outsidethat State and buys, sells, supplies, or distributes, goods in the State or acts on behalf of suchdealer as-- (i) a mercantile agent as defined in the Sale of Goods Act, 1930 (3 of 1930), or (ii) an agent for handling of goods or documents of title relating to goods, or (iii) an agent for the collection or the payment of the sale price of goods or as aguarantor for such collection or payment, and every local branch or office in a State of a firm registered outside that State or a company orother body corporate, the principal office or headquarters whereof is outside that State, shall bedeemed to be a dealer for the purposes of this Act. Explanation 2.--A Government which, whether or not in the course of business, buy, sells,supplies or distributes, goods, directly or otherwise, for cash or for deferred payment or forcommission, remuneration or other valuable consideration, shall except in relation to any sale,supply or distribution or surplus, un-serviceable or old stores or materials or waste products orobsolete or discarded machinery or parts or accessories thereof, be deemed to be a dealer for thepurposes of this Act;] 5* * * * * 6[(d) "goods" means-- (i) petroleum crude; (ii) high speed diesel; (iii) motor spirit (commonly known as petrol); (iv) natural gas; (v) aviation turbine fuel; and (vi) alcoholic liquor for human consumption;] 7[(dd) "place of business" includes-- (i) in any case where a dealer carries on business through an agent by (whatevername called), the place of business of such agent; (ii) a warehouse, go down or other place where a dealer stores his goods; and (iii) a place where a dealer keeps his books of account;] (e) "prescribed" means prescribed by rules made under this Act; (f) "registered dealer" means a dealer who is registered under section 7; 8[(g) "sale", with its grammatical variations and cognate expressions, means any transfer ofproperty in goods by one person to another for cash or deferred payment or for any other valuableconsideration, and includes,-- (i) a transfer, otherwise than in pursuance of a contract, of property in any goods for cash,deferred payment or other valuable consideration; (ii) a transfer of property in goods (whether as goods or in some other form) involved in theexecution of a works contract; (iii) a delivery of goods on hire-purchase or any system of payment by installments; (iv) a transfer of the right to use any goods for any purpose (whether or not for a specifiedperiod) for cash, deferred payment or other valuable consideration; (v) a supply of goods by any unincorporated association or body of persons to a memberthereof for cash, deferred payment or other valuable consideration; (vi) a supply, by way of or as part of any service or in any other manner whatsoever, ofgoods, being food or any other article for human consumption or any drink (whether or notintoxicating), where such supply or service, is for cash, deferred payment or other valuableconsideration, but does not include a mortgage or hypothecation of or a charge or pledge on goods;] (h) "sale price" means the amount payable to a dealer as consideration for the sale of anygoods, less any sum allowed as cash discount according to the practice normally prevailing in thetrade, but inclusive of any sum charged for anything done by the dealer in respect of the goods atthe time of or before the delivery thereof other than the cost of freight or delivery or the cost ofinstallation in cases where such cost is separately charged: 9[Provided that in the case of a transfer of property in goods (whether as goods or in some otherform) involved in the execution of a works contract, the sale price of such goods shall bedetermined in the prescribed manner by making such deduction from the total consideration for theworks contract as may be prescribed and such price shall be deemed to be the sale price for thepurposes of this clause.] 10[(i) "sales tax law" means any law for the time being in force in any State or part thereof whichprovides for the levy of taxes on the sale or purchase of goods generally or on any specified goodsexpressly mentioned in that behalf, and "general sales tax law" means the law for the time being inforce in any State or part thereof which provides for the levy of tax on the sale or purchase of goodsgenerally and includes value added tax law;] (j) "turnover" used in relation to any dealer liable to tax under this Act means the aggregate of thesale prices received and receivable by him in respect of sales of any goods in the course of inter-Statetrade or commerce made during any prescribed period 11[and determined in accordance with theprovisions of this Act and the rules made thereunder;] 12[(ja) "works contract" means a contract for carrying out any work which included assembling,construction, building, altering, manufacturing, processing, fabrication, erection, installation, fittingout, improvement, repair or commissioning of any movable or immovable property;] (k) "year", in relation to a dealer, means the year applicable in relation to him under the generalsales tax law of the appropriate State, and where there is no such year applicable, the financial year.

A sale or purchase of goods shall be deemed to take place in the course of inter-Statetrade or commerce if the sale or purchase-- (a) occasions the movement of goods from one State to another; or (b) is effected by a transfer of documents of title to the goods during their movement fromone State to another. Explanation 1.--Where goods are delivered to a carrier or other bailee for transmission, themovement of the goods shall, for the purposes of clause (b), be deemed to commence at the timeof such delivery and terminate at the time when delivery is taken from such carrier or bailee. Explanation 2.--Where the movement of goods commences and terminates in the same Stateit shall not be deemed to be a movement of goods from one State to another by reason merely ofthe fact that in the course of such movement the goods pass through the territory of any otherState. 1[Explanation 3.--Where the gas sold or purchased and transported through a commoncarrier pipeline or any other common transport or distribution system becomes co-mingled and fungible with other gas in the pipeline or system and such gas is introduced into the pipeline orsystem in one State and is taken out from the pipeline in another State, such sale or purchase ofgas shall be deemed to be a movement of goods from one State to another.]

(1) Subject to theprovisions contained in section 3, when a sale or purchase of goods is determined in accordance withsub-section (2) to take place inside a State, such sale or purchase shall be deemed to have taken placeoutside all other States. (2) A sale or purchase of goods shall be deemed to take place inside a State, if the goods are withinthe State-- (a) in the case of specific or ascertained goods, at the time the contract of sale is made; and (b) in the case of unascertained or future goods, at the time of their appropriation to the contractof sale by the seller or by the buyer, whether assent of the other party is prior or subsequent to suchappropriation Explanation.--Where there is a single contract of sale or purchase of goods situated at moreplaces than one, the provisions of this sub-section shall apply as if there were separate contracts inrespect of the goods at each of such places.

(1)A sale or purchase of goods shall be deemed to take place in the course of the export of the goods out ofthe territory of India only if the sale or purchase either occasions such export or is effected by a transfer ofdocuments of title to the goods after the goods have crossed the customs frontiers of India. (2) A sale or purchase of goods shall be deemed to take place in the course of the import of the goodsinto the territory of India only if the sale or purchase either occasions such import or is effected by atransfer of documents of title to the goods before the goods have crossed the customs frontiers of India. 1[(3) Notwithstanding anything contained in sub-section (1), the last sale or purchase of any goodspreceding the sale or purchase occasioning the export of those goods out of the territory of India shall alsobe deemed to be in the course of such export, if such last sale or purchase took place after, and was for thepurpose of complying with, the agreement or order for or in relation to such export.] 2[(4) The provisions of sub-section (3) shall not apply to any sale or purchase of goods unless thedealer selling the goods furnishes to the prescribed authority in the prescribed manner a declaration dulyfilled and signed by the exporter to whom the goods are sold in a prescribed form obtained from theprescribed authority. (5) Notwithstanding anything contained in sub-section (1), if any designated Indian carrier purchasesAviation Turbine Fuel for the purposes of its international flight, such purchase shall be deemed to takeplace in the course of the export of goods out of the territory of India. Explanation.--For the purposes of this sub-section, "designated Indian carrier" means any carrierwhich the Central Government may, by notification in the Official Gazette, specify in this behalf.]