Sales tax registration

[Guest]

can an unregistered dealer make inter state sale, is he required to charge CST on his bill.

Can he apply for sales tax registration after effecting this sale.

How department see this sale and what are the possible consequences of this issue

[MUKUND THAKKAR]

un registered dealer chagred full tax, first apply for registration and than after raised the bill by putting word " CST- registration applied for"

[Ganeshan Kalyani]

Sir, Interstate Sale is not possible without having CST Registration number. If the dealer has VAT registration number then the dealer can sell interstate provided he has to charge full VAT i.e. the rate of tax applicable for that product in the selling state. But in absence of both VAT and CST the transaction is not allowed.

In most of the States, way bill/ transit pass is required. The Commercial Tax Officer many a time detains transport vehicle for want of proper invoice, tax charged, way bill etc. The dealer is required to pay some percent of the value of goods to get his released. Then the matter goes to assessment. After submitting the required document the case is settled. In case if there is no document to the satisfaction of the Officer then it becomes difficult to get back the ceases goods / vehicle.

In view of the above facts it is advisable to get registered under CST before initiating any Interstate transaction. Thanks.

[YAGAY andSUN]

Yes, an unregistered dealer make inter State Sales provided he has not crossed the threshold limit as perscribed under VAT Laws.

WIthin 30 days after crossing of the threshold limit one has to get the registration.

If in threshold limit then department cannot take any action, however, after crossing the limit and not get the RC Department can take necessary action to safeguard the revenue.

[Ganeshan Kalyani]

M/s. YAGAY and SUN, the query is on Interstate transaction, so where does VAT Act, came into picture. The Central Sales Tax Act, need to be referred to. Thanks.

AI Summary

Interstate sale registration requirement: CST registration generally required; non-compliance risks detention, assessment and enforced registration. The document advises that CST registration is generally required for interstate transactions; without a CST number an interstate sale is typically impermissible, exposing the dealer to detention of goods, interim payments, and assessment proceedings. Dealers below turnover thresholds may postpone registration only until prescribed limits are crossed, but must register within the statutory period thereafter. The practical recommendation is to obtain CST registration and proper invoices/waybills before initiating interstate sales to avoid enforcement action.