Requirements of registration under Central Sales Tax Act 1956 and Uttar Pradesh Tax on Entry of Good

[Sanjeev Agrawal]

Is there a requirement for CNG pumps to get registered in Central Sales Tax Act, 1956 and Entry Tax Act in Uttar Pradesh other than UPVAT as on date.

[Sadanand Bulbule]

Dear querist

Plz refer the following Section 9 of the CGST ACT, 2017:

  9.(1) Subject to the provisions of sub-section (2), there shall be levied a tax called the central goods and services tax on all intra-State supplies of goods or services or both, except on the supply of alcoholic liquor for human consumption, on the value determined under section 15 and at such rates, not exceeding twenty per cent., as may be notified by the Government on the recommendations of the Council and collected in such manner as may be prescribed and shall be paid by the taxable person.

(2) The central tax on the supply of petroleum crude, high speed diesel, motor spirit (commonly known as petrol), natural gas and aviation turbine fuel shall be levied with effect from such date as may be notified by the Government on the recommendations of the Council.

Since CNG is outside the ambit of the GST regime at present and continues to be taxable under the Local Sales Tax Act or VAT Act, registration under the CST Act [ not yet subsumed] is required for effecting interstate purchase/sale of petroleum products[supra]. However as far as Entry Tax Act is concerned, I hope it is no more in existence being subsumed under the UPGST Act. Double check with the local authorities.

AI Summary

Registration under central sales tax required for CNG when outside GST; entry tax likely subsumed under state GST framework. Because compressed natural gas currently lies outside the GST framework and remains taxable under local sales tax or VAT, entities undertaking interstate purchase or sale of CNG must register under the Central Sales Tax Act. The Entry Tax Act in the State is likely subsumed by the State GST regime, potentially eliminating separate entry tax obligations, subject to local confirmation.