CENTRAL SALES TAX (CST)
CST Act makes provisions for registration of dealer. Registration brings many advantages e.g. the dealer can issue ‘C’ form and purchase goods at concessional rate.
COMPULSORY REGISTRATION UNDER CST:
Section 2(f) states that ‘registered dealer’ means a dealer who is registered under section 7 of CST Act. As per section 7(1), every dealer liable to pay Central Sales Tax has to register himself with sales tax authority. As per section 6(1) of CST Act, every dealer effecting sale in the course of Inter State trade or commerce is liable to pay CST. Thus, only those dealers who ‘effect’ inter state sales are required to register under CST Act. ‘Effect’ means ‘bring about, accomplish, cause to exist or occur’ [Concise Oxford Dictionary 1994 edition]. Thus, intermediaries like agents, transporters etc. who only facilitate sales are not required to be registered, as they do not ‘effect’ sales.
Central Government has authorised State Governments to prescribe State Sales Tax authorities authorised for the purpose of registration. Thus, registration under CST Act is done by State Sales Tax authorities who are authorised for the purpose.
APPLICATION FOR REGISTRATION
Application for registration should be made in prescribed form ‘A’ as per CST (Registration and Turnover) Rules; within 30 days from the date when dealer becomes liable to CST. Application fee of Rs. 25 is payable (by way of court fee stamps). Application has to be signed by (a) proprietor of business (b) one of the partners in case of business owned by partnership firm (c) Karta or Manager of HUF (d) director or principal officer of Company (e) principal officer in case of association of individuals or (f) officer authorised by Government in case of Government.
ADDITIONAL PLACES OF BUSINESS
If a dealer has places of business in different States, he has to obtain separate registration in each State. However, if he has more than one places of business within the same State, he has to get only one registration with additional places of business endorsed on the Certificate. Definition of ‘place of business’ has already been explained in earlier chapter.
OTHER DOCUMENTS REQUIRED AT TIME OF REGISTRATION
Other documents required at the time of registration vary from State to State. Normally, following are asked for – (a) Particulars of Directors/ partners (b) Copies of articles of association, memorandum in case of company and partnership deed if applicant is a firm (c) Copies of rent agreements (d) Nominations as Manager (e) List of places of business, godown (f) Details of machinery (g) Details of bankers (h) Photographs of directors / partners.
ALL ITEMS OF PURCHASE AND SALE MUST BE INCLUDED IN REGISTRATION
The ‘Registration certificate’ is indeed very important. As per section 10(c), false representation when purchasing any goods that the class of goods are covered by the registration certificate, is an offence. As per section 10(a), furnishing a false certificate is an offence. Thus, while issuing ‘C’ form or other forms under the Act, it must be ensured that goods are covered in the Registration Certificate. This is particularly so because there is no provision to amend the Registration Certificate with retrospective effect.
CANCELLATION OF CST REGISTRATION
Registration can be cancelled either on request of dealer or suo motu by sales tax authorities.