Inter State sales tax: central levy collected in origin State under State sales tax procedures for assessment and recovery. Tax on inter State sales of goods is a central levy collected in the State from which movement of goods commenced; certain subsequent in transit sales are allocated by seller registration and prescribed documentation. State general sales tax law, with necessary modifications, applies for assessment, collection, interest, penalties and enforcement on behalf of the Government of India, and where no State law exists the Central Government may prescribe rules. Proceeds, including interest and penalties, collected in a State are assigned to and retained by that State, while Union Territory proceeds form part of the Consolidated Fund of India.