Advantages of CST
- CST is a source of revenue generation that can be used to finance different developmental campaigns, infrastructure upgrades, and public services.
- It has a simplified tax structure that assists in reducing the administrative difficulties and confusion faced by groups engaged in regional trades.
- It encourages acceptance of interstate taxes on sales.
- Both levels of government that is central and state government are able to meet their financial obligations due to the revenue-sharing mechanism, which ensures a fair distribution of tax revenues.
- It allows the government to control interstate transactions and keep an eye on the movement of goods.
CST Full Form
Full Form of CST: CST stands for Central Sales Tax. A tax charged by the central government on the sale of products during commerce between states or inside the borders of India is referred to as a central sales tax. The Central Sales Tax Act of 1956 regulates it. When goods are sold between states or to entities like the government, municipal governments, or authorized dealers outside the state, CST is applicable. Depending on the type of goods, the CST rate differs and is set by the respective state governments.