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<h1>Restriction on State Sales Tax limits state levies on declared goods and requires reimbursement when central tax applies in interstate sales.</h1> Restriction on State tax: State sales tax on declared goods inside the State is capped at a specified maximum rate, and where such goods taxed within the State are subsequently sold in inter-State trade and tax has been paid under the Central scheme, the State levy is to be reimbursed to the person making the inter-State sale in such manner and subject to such conditions as the State law provides. Specific commodity rules treat paddy and rice as linked for tax reduction and aggregation purposes and treat certain pulses as a single commodity for levy.
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