1) Registration by whom & when?

A dealer effecting interstate trade is liable for registration under CST Act and payment of Tax.
A dealer has to apply within 30 days of effecting first interstate trade

2) What is interstate trade?

Interstate trade means Purchase or Sale of goods resulting into movement of goods from one state to another.
CST is payable on interstate sale of taxable goods irrespective of the turnover limit for registration. No CST is payable for export of goods outside India.

3) Declared goods

Declared goods are the goods which are declared under section 14 of the Act to be of special importance in interstate trade or commerce.
Section 15 of the Act, prescribes restrictions and conditions in regard to tax on sale or purchase of declared goods within a state. Accordingly tax payable on declared goods shall not exceed 4%.

4) Procedural matters

The Administration of the Act has been entrusted to the respective state governments. It is provided in the Act that all authorities empowered to assess, reassess, collect and enforce payment of any tax under General Sales Tax laws of the appropriate state shall on behalf of the Government of India, assess, reassess collect and enforce payment of Tax including any penalty payable by the dealer under this act. The periodicity of the returns shall be the same as applicable under the General Sales Tax Laws.

Section 8 of CST Act, 1956 prescribes rates of Taxes on Sale in course of interstate trade.

Single Declaration Form for a quarter instead of Year 

CST Rules has been amended with effect from 1^st October, 2005. Hither to before a single declaration/certificate in Form C/EI/EII used to cover all transactions of sale which take place in one financial year between the same two dealers subject to the condition that where, in the case of any transaction of sale, the delivery of goods is spread over to different financial years it shall be necessary to furnish a separate declaration or certificate in respect of goods so delivered in each financial year. Now the year is changed to a quarter. Hence, with effect from 1^st October, 2005 a declaration in Form C/EI/EII to be obtained for sales made during the quarter. In other words now C/EI/EII Form should be obtained from the customer for sales made outside the state on quarterly basis. 

In case of stock transfer between branches or by head office to branch /agent in other state Form `F’ is required to be issued by receiving branch /agent to the stock transferring head office/branch/principal. According to CST rules, F form shall be issued on monthly basis to evidence stock transfer otherwise than sales.

Further, all the forms as said above along with Form F shall have to be submitted to the Assessing Authority within 3 months from the end of the period i.e. 3 months from the end of the quarter in case of Form C/EI/EII and 3 months from the end of the month in case of Form F.

Extension of time for furnishing the Forms would be the discretion of Assessing Authority if there is sufficient reason for not furnishing the form in time.