1. SHORT TITLE EXTENT AND COMMENCEMENT
(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 date as the Central Government
may, by notification in the Official Gazette, appoint, and
different dates may be appointed for different provisions of this
Act.
1. The words “except the State of Jammu and kashmir “ omitted by Act 5 of
1958.
1. DEFINITIONS
In this Act, unless the context otherwise requires
(b) “appropriate State” means
(i) in relation to a dealer who has one or more places of
business situate in the same state, that state;
(ii) in relation to a dealer who has 2
[***] places of business
situate in different states, every such state with respect to the
place or places of business situate within its territory.
2. The words “one or more” omitted by Act 31 of 1958, w.e.f. 1.10.58
3
[***] Explanation.
3. Omitted by Act 31 of 1958 w.e.f. 1.10.58
4
[[aa] “business” includes-
4. Inserted by Act 103 of 1976
(i) any trade, commerce or manufacture, or any adventure or
concern in the nature of trade, 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;]
1
[ab] “Crossing the customs frontiers of India” means crossing the
limits of the area of a customs station in which imported
goods or export goods are ordinarily kept before clearance
by customs authorities. 1. Inserted by Act 103 of 1976.
Explanation: For the purposes of this clause, “customs station” and
“customs authorities”, shall have the same meanings as in the Customs
Act, 1962 (52 of 1962);]
2
[[b] “dealer” means any person who, carries on (whether
regularly or otherwise] the business of buying,
selling, supplying or distributing goods, directly or indirectly,
for cash, or for deferred payment, or for commission,
remuneration or other valuable consideration, and includes – 2. Substituted by Act 103 of 1976 for cl(b)
(i) a local authority, a body corporate, a company, any cooperative society or other society, club, firm, Hindu
undivided family or other association of persons which
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 herein before
mentioned or not, who carries on the business of buying,
selling, supplying or distributing goods belonging to any
principal whether disclosed or not; and
(iii) an auctioneer who carries on the business of selling or
auctioning goods belonging to any principal, whether
disclosed or not and whether the offer of the intending
purchaser is accepted by him or by the principal or a
nominee of the principal.
Explanation1 : Every person who acts as an agent, in any State, of a
dealer residing outside that State and buys, sells, supplies, or distributes,
goods in the State or acts on behalf of such dealer as –
(i) a mercantile agent as defined in the State 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 a guarantor for such collection or payment,
and every local branch or office in a State of a firm registered outside that
State or a company or other body corporate, the principal office or
headquarters whereof is outside that State, shall be deemed to be a
dealer for the purposes of this Act.
Explanation 2 : A Government which, whether or not in the course of
business, buys, sells, supplies or distributes, goods directly or otherwise,
for cash or for deferred payment or for commission, remunerations or
other valuable consideration, shall, except in relation to any sale, supply
or distribution of surplus, unserviceable or old stores or materials or waste
products or obsolete or discarded machinery or parts or accessories
thereof, be deemed to be a dealer for the purposes of this Act.]
(c) “declared goods” means goods declared under Section 14 to be of
special importance in inter-state trade or commerce;
(d) “goods” includes all materials, articles, commodities and all other
kinds of movable property, but does not include 1
[news papers,]
actionable claims, stocks, shares and securities;
1
[dd] “Place of business “ includes –
1.inserted by Act 31 of 1958 w.e.f. 1.10.1958
(i) In any case where a dealer carries on business through
an agent by [whatever name called], the place of
business of such agent;
(ii) a warehouse, godown 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
2
[ (g) “sale”, with its grammatical variations and cognates expressions,
means any transfer of property in goods by one person to another
for cash or deferred payment or for any other valuable
consideration, 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 the execution 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 specified period) for cash, deferred payment or other
valuable consideration;
(v) a supply of goods by any unincorporated association or body of
persons to a member thereof 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, of goods, being food or any other article for
human consumption or any drink (whether or not intoxicating),
where such supply or service, is for cash, deferred payment or other
valuable consideration, 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 any goods, less any sum allowed as cash discount
according to the practice normally prevailing in the trade, but
inclusive of any sum charged for anything done by the dealer in
respect of the goods at the time of or before the delivery thereof
other than the cost of freight or delivery or the cost of installation in
cases where such cost is separately charged;
(i) “Sales tax law” means any law for the time being in force in any
State or part thereof which provides for the levy of taxes on the sale or
purchase of goods generally or on any specified goods expressly
mentioned in that behalf, and “general sales tax law” means the law for
the time being in force in any State or part thereof which provides for the
levy of tax on the sale or purchase of goods generally;
(j) “turnover” used in relation to any dealer liable to tax under this Act
means the aggregate of the sale prices received and receivable by him in
respect of sales of any goods in the course of inter-State trade or
commerce made during any prescribed period 1
[and determined in
accordance with the provisions of the Act and rules made there under]].
(k) “year”, in relation to a dealer, means the year applicable in relation to
him under the general sales tax law of the appropriate State, and where
there is no such year applicable, the financial year.
1. substituted by Act.28 of 1969 for words” and determined in the prescribed manner” retrospectively.