THE CENTRAL SALES TAX ACT, 1956 
_________ 

ARRANGEMENT OF SECTIONS 
_________ 

CHAPTER I 

PRELIMINARY 

SECTIONS 

1.  Short title, extent and commencement. 
2.  Definitions. 

 CHAPTER II 

FORMULATION OF PRINCIPLES FOR DETERMINING WHEN A SALE OR PURCHASE OF GOODS TAKES PLACE IN 
THE COURSE OF INTER-STATE TRADE OR COMMERCE OR OUTSIDE A STATE OR IN THE COURSE OF IMPORT 
OR EXPORT 

3.  When  is  a  sale  or  purchase  of  goods  said  to  take  place  in  the  course  of  inter-State  trade  or 

commerce. 

4.  When is a sale or purchase of goods said to take place outside a State. 
5.  When is a sale or purchase of goods said to take place in the course of import or export. 

CHAPTER III 
INTER-STATE SALES TAX 

6.  Liability to tax on inter-State sales. 
6A. Burden of proof, etc., in case of transfer of goods claimed otherwise than by way of sale. 
7.  Registration of dealers. 
8.  Rates of tax on sales in the course of inter-State trade or commerce. 
8A. Determination of turnover. 
9.  Levy and collection of tax and penalties. 
9A. Collection of tax to be only by registered dealers. 
9B. Rounding off of tax, etc. 
10.  Penalties. 
10A. Imposition of penalty in lieu of prosecution. 
11.  Cognizance of offences. 
12.  Indemnity. 
13.  Power to make rules. 

GOODS OF SPECIAL IMPORTANCE IN INTER-STATE TRADE OR COMMERCE 

CHAPTER IV 

14.  [Omitted.]. 
15.  [Omitted.]. 

_____________________________ 
*Subject to verification of confirmation by the Administration Ministry. 

1 

 
 
 
 
CHAPTER V 
LIABILITY IN SPECIAL CASES 

SECTIONS 

16.  Definitions. 
17.  Company in liquidation. 
18.  Liability of directors of private company in liquidation. 

CHAPTER VA 

APPEALS TO THE HIGHEST APPELLATE AUTHORITY OF THE STATE 

18A. Appeals to highest appellate authority of State. 

CHAPTER VI 

AUTHORITY TO SETTLE DISPUTES IN CURSE OF INTER -STATE TRADE OR COMMERCE 

19.  Central Sales Tax Appellate Authority. 

19A. Vacancies, etc., not to invalidate proceedings. 

20.  Appeals. 
21.  Procedure on receipt of application. 
22.  Poweres of the Authority. 
23.  Procedure of Authority. 
24.  Authority for Advance Ruilings to function as Authority under this Act. 
25.  Transfer of pending proceedings. 
26.  Applicability of order passed. 

2 

 
 
 
 
 
 
 
 
 
 
 
 
 
THE CENTRAL SALES TAX ACT, 1956 
ACT NO. 74 OF 19561 

[21st December, 1956.] 

An Act to formulate principles for determining when a sale or purchase of goods takes place in 
the course of inter-State trade or commerce or outside a State or in the course of import into 
or export from India, to provide for the levy, collection and distribution of taxes on sales of 
goods  in  the  course  of  inter-State  trade  or  commerce  and  to  declare  certain  goods  to  be  of 
special  importance  in  inter-State  trade  or  commerce  and  specify  the  restrictions  and 
conditions  to  which  State  laws  imposing  taxes  on  the  sale  or  purchase  of  such  goods  of 
special importance shall be subject. 

BE it enacted by Parliament in the Seventh Year of the Republic of India as follows:— 

CHAPTER I 

PRELIMINARY 

1. Short title extent and commencement.—(1) This Act may be called the Central Sales Tax Act, 

1956. 

(2) It extends to the whole of India 2*** 

(3)  It  shall  come  into  force  on  such  date3  as  the  Central  Government  may,  by  notification  in  the 

Official Gazette, appoint, and different dates may be appointed for different provisions of this Act. 

2. Definitions.—In this Act, unless the context otherwise requires,— 

(a) “appropriate State” means— 

(i)  in  relation  to  a  dealer  who  has  one  or  more  places  of  business  situate  in  the  same 

State, that State; 

(ii)  in  relation  to  a  dealer  who  has 4***  places  of  business  situate  in  the  different  States, 

every such State with respect to the place or places of business situated within its territory; 

5* 

* 

6[(aa) “business”  includes— 

* 

* 

* 

(i)  any  trade,  commerce  or  manufacture,  or  any  adventure  or  concern  in  the  nature  of 
commerce, 

or  manufacture,  whether 

trade,  commerce 

trade, 

such 

not 

or 

1. The Act has been extended to Goa, Daman and Diu (with modifications) by Reg. 12 of 1962, section 3 and Sch., (w.e.f. 21-1-
1963) to Kohima and Mokokchung districts of Nagaland (as in force on 5-8-1971) by Act 61 of 1972, section 14 (1) (w.e.f. 
30-11-1972). The amendments made to the Act 61 of 1972, came into force in the said districts (w.e.f. 1-4-1973) [vide section 
14(2), ibid]: 

2. The words “except the State of Jammu and Kashmir” omitted by Act 5 of 1958, s. 2 (w.e.f. 1-10-1958). 
3. 5th January, 1957, all sections except section 15, vide notification No. S.R.O. 78, dated 4th January, 1957, Gazette of India, 
Extra. 1957, Pt. II, Section 3, p.57; and section 15 with effect from 1st October, 1958, vide G.S.R. 897, dated 23rd September, 
1958, Gazette of India, Extra. 1958, Pt. II, Section 3 (i), p. 476. 

4. The words “one or more” omitted by Act 31 of 1958, s. 2 (w.e.f. 1-10-1958). 
5. The Explanation omitted by s. 2, ibid. (w.e.f. 1-10-1958). 
6. Ins. by Act 103 of 1976, s. 2 (w.e.f. 7-9-1076). 
*Subject to verification of confirmation by the Administration Ministry.

3 

 
 
 
 
 
 
 
 
                                                           
 
 
manufacture,  adventure  or  concern  is  carried  on  with  a  motive  to  make  gain  or  profit  and 
whether  or  not  any  gain  or  profit  accrues  from  such  trade,  commerce,  manufacture, 
adventure or  concern; and 

(ii)  any  transaction  in  connection  with  or  incidental  or  ancillary  to,  such  trade, 

commerce,  manufacture, adventure or concern; 

(ab)  “crossing  the  customs  frontiers  of  India”  means  crossing  in  the  limits  of  the  area  of  a 
customs  station  in  which  imported  goods  or  export  goods  are  ordinarily  kept  before  clearance 
by  customs authorities. 

Explanation.—For the purposes of this clause, “customs station” and “customs authorities” shall 

have the same meanings as in the Customs Act, 1962 (52 of 1962);] 

1[(b)  “dealer”  means  any  person  who  carries  on  (whether regularly  or  otherwise)  the  business  of 
buying, selling, supplying or distributing goods, directly or indirectly, for cash or for  deferred payment, 
or for commission remuneration or other valuable consideration, and  includes— 

(i)  a  local  authority,  a  body  corporate,  a  company,  any  co-operative  society  or 
other  society,  club,  firm,  Hindu  undivided  family  or  other  association  of  persons 
which  carries on such business; 

(ii) a factor, broker, commission agent, del credere agent, or any other mercantile agent, 
by whatever name called, and whether of the same description as hereinbefore mentioned or 
not, who carries on the business of buying, selling, supplying or distributing, goods belonging 
to any principal whether disclosed or not; and 

(iii) an auctioneer who carries on the business of selling or auctioning goods belonging to 
any  principal,  whether  disclosed  or  not  and  whether  the  offer  of  the  intending purchaser  is 
accepted by him or by the principal or a nominee of the principal. 

Explanation 1.—Every person who acts as an agent, in any State, of a dealer residing outside 
that  State  and  buys,  sells,  supplies,  or  distributes,  goods  in  the  State  or  acts  on behalf  of  such 
dealer as— 

(i) a mercantile agent as defined in the Sale of Goods Act, 1930 (3 of 1930), or 

(ii) an agent for handling of goods or documents of title relating to goods, or 

(iii)  an  agent  for  the  collection  or  the  payment  of  the  sale  price  of  goods  or  as  a 

guarantor for such collection or payment,  

and every local branch or office in a State of a firm registered outside that State or a company or 
other body corporate, the principal office or headquarters whereof is outside that State, shall be 
deemed to be a dealer for the purposes of this Act. 

Explanation 2.—A Government which, whether or not in the course of business, buy, sells, 
supplies  or  distributes,  goods,  directly  or  otherwise,  for  cash  or  for  deferred payment  or  for 
commission,  remuneration  or  other  valuable  consideration,  shall  except  in relation  to  any  sale, 
supply  or  distribution  or  surplus,  un-serviceable  or  old  stores  or materials  or  waste  products  or 
obsolete or discarded machinery or parts or accessories thereof, be deemed to be a dealer for the 
purposes of this Act;] 

2* 

* 

* 

* 

* 

1. Subs. by Act 103 of 1976, s. 2, for cl. (b) (w.e.f. 7-9-1976). 
2. Clause (c) omitted by Act 18 of 2017, s. 13 (w.e.f. 1-7-2017). 

4 

 
 
 
 
 
 
 
 
 
                                                           
1[(d) “goods” means— 

(i) petroleum crude; 

(ii) high speed diesel; 

(iii) motor spirit (commonly known as petrol); 

(iv) natural gas; 

(v) aviation turbine fuel; and 

(vi) alcoholic liquor for human consumption;] 

2[(dd) “place of business” includes— 

(i)  in  any  case  where  a  dealer  carries  on  business  through  an  agent  by  (whatever 

name called), the place of business of such agent; 

(ii) a warehouse, go down or other place where a dealer stores his goods; and 

(iii) a place where a dealer keeps his books of account;] 

(e) “prescribed” means prescribed by rules made under this Act; 

(f) “registered dealer” means a dealer who is registered under section 7; 

3[(g)  “sale”,  with  its  grammatical  variations  and  cognate  expressions,  means  any  transfer  of 
property in goods by one person to another for cash or deferred payment or for any other valuable 
consideration, and includes,— 

(i) a transfer, otherwise than in pursuance of a contract, of property in any goods for cash, 

deferred payment or other valuable consideration; 

(ii) a transfer of property in goods (whether as goods or in some other form) involved in the 

execution of a works contract; 

(iii) a delivery of goods on hire-purchase or any system of payment by installments; 

(iv) a transfer of the right to use any goods for any purpose (whether or not for a specified 

period) for cash, deferred payment or other valuable consideration; 

(v) a supply of goods by any unincorporated association or body of persons to a member 

thereof for cash, deferred payment or other valuable consideration; 

(vi)  a  supply,  by  way  of  or  as  part  of  any  service  or  in  any  other  manner  whatsoever,  of 
goods,  being  food  or  any  other  article  for  human  consumption  or  any  drink  (whether  or  not 
intoxicating),  where  such  supply  or  service,  is  for  cash,  deferred  payment  or  other  valuable 
consideration,  

but does not include a mortgage or hypothecation of or a charge or pledge on goods;] 

(h)  “sale  price”  means  the  amount  payable  to  a  dealer  as  consideration  for  the  sale  of  any 
goods, less any sum allowed as cash discount according to the practice normally prevailing in the 
trade, but inclusive of any sum charged for anything done by the dealer in respect of the goods at 
the time  of  or  before  the  delivery  thereof  other  than  the  cost  of  freight  or  delivery  or  the cost  of 
installation in cases where such cost is separately charged: 

1. Subs. by Act 18 of 2017, s. 13, for clause (d) (w.e.f. 1-7-2017). 
2. Ins. by Act 31 of 1958, s. 2 (w.e.f. 1-10-1958). 
3. Subs. by Act 20 of 2002, s. 150, for clause (g) (w.e.f. 11-5-2002). 

5 

 
                                                           
1[Provided that in the case of a transfer of property in goods (whether as goods or in some other 
form)  involved  in  the  execution  of  a  works  contract,  the  sale  price  of  such  goods  shall  be 
determined in the prescribed manner by making such deduction from the total consideration for the 
works  contract  as  may  be  prescribed  and  such  price  shall  be  deemed  to  be  the  sale  price  for  the 
purposes of this clause.] 

2[(i) “sales tax law” means any law for the time being in force in any State or part thereof which 
provides for the levy of taxes on the sale or purchase of goods generally or on any specified goods 
expressly mentioned in that behalf, and “general sales tax law” means the law for the time being in 
force in any State or part thereof which provides for the levy of tax on the sale or purchase of goods 
generally and includes value added tax law;] 

(j) “turnover” used in relation to any dealer liable to tax under this Act means the aggregate of the 
sale prices received and receivable by him in respect of sales of any goods in the course of inter-State 
trade  or  commerce  made  during  any  prescribed  period  3[and  determined  in  accordance  with  the 
provisions of this Act and the rules made thereunder]; 

4[(ja) “works contract” means a contract for carrying out any work which included assembling, 
construction,  building,  altering,  manufacturing,  processing,  fabrication,  erection,  installation,  fitting 
out, improvement, repair or commissioning of any movable or immovable property;] 

(k) “year”, in relation to a dealer, means the year applicable in relation to him under the general 

sales tax law of the appropriate State, and where there is no such year applicable, the financial year. 

CHAPTER II 

FORMULATION OF PRINCIPLES FOR DETERMINING WHEN A SALE OR PURCHASE OF GOODS TAKES PLACE IN 
THE COURSE OF INTER-STATE TRADE OR COMMERCE OR OUTSIDE A STATE OR IN THE COURSE OF IMPORT 
OR EXPORT 

3. When is a sale or purchase of goods said to take place in the course of inter-State trade or 
commerce.—A sale or purchase of goods shall be deemed to take place in the course of inter-State 
trade or commerce if the sale or purchase— 

(a) occasions the movement of goods from one State to another; or 

(b) is effected by  a transfer of documents of title to the goods during their movement from 

one State to another. 

Explanation 1.—Where goods are delivered to a carrier or other bailee for transmission, the 
movement of the goods shall, for the purposes of clause (b), be deemed to commence at the time 
of such delivery and terminate at the time when delivery is taken from such carrier or bailee. 

Explanation 2.—Where the movement of goods commences and terminates in the same State 
it shall not be deemed to be a movement of goods from one State to another by reason merely of 
the  fact  that  in  the  course  of  such  movement  the  goods  pass  through  the  territory  of  any  other 
State. 

5[Explanation  3.—Where  the  gas  sold  or  purchased  and  transported  through  a  common 
carrier  pipeline  or  any  other  common  transport  or  distribution  system  becomes  co-mingled  and 

1. The proviso ins. by Act 18 of 2005, s. 89 (w.e.f. 13-5-2005).  
2. Subs. by s. 89, ibid., for clause (i) (w.e.f. 13-5-2005). 
3. Subs. by Act 28 of 1969, s. 2, for “and determined in the prescribed manner” (w.e.f. 30-8-1969). 
4. Ins. by Act 18 of 2005, s. 89 (w.e.f. 13-5-2005). 
5. Ins. by Act 28 of 2016, s. 224 (w.e.f. 14-5-2016). 

6 

 
                                                           
fungible with other gas in the pipeline or system and such gas is introduced into the pipeline or 
system in one State and is taken out from the pipeline in another State, such sale or  purchase of 
gas shall be deemed to be a movement of goods from one State to another.] 

4.  When  is  a  sale  or  purchase  of  goods  said  to  take  place  outside  a  State.—(1)  Subject  to  the 
provisions  contained  in  section  3,  when  a  sale  or  purchase  of  goods  is  determined  in  accordance  with  
sub-section (2) to  take  place  inside  a  State,  such  sale  or  purchase  shall  be  deemed  to  have  taken  place 
outside all other States. 

(2) A sale or purchase of goods shall be deemed to take place inside a State, if the goods are within 

the State— 

(a) in the case of specific or ascertained goods, at the time the contract of sale is made; and 

(b) in the case of unascertained or future goods, at the time of their appropriation to the contract 
of sale by the seller or by the buyer, whether assent of the other party is prior or subsequent to such 
appropriation 

Explanation.—Where  there  is  a  single  contract  of  sale  or  purchase  of  goods  situated  at  more 
places than one, the provisions of this sub-section shall apply as if there were separate contracts in 
respect of the goods at each of such places. 

5. When is a sale or purchase of goods said to take place in the course of import or export.—(1) 
A sale or purchase of goods shall be deemed to take place in the course of the export of the goods out of 
the territory of India only if the sale or purchase either occasions such export or is effected by a transfer of 
documents of title to the goods after the goods have crossed the customs frontiers of India. 

(2) A sale or purchase of goods shall be deemed to take place in the course of the import of the goods 
into  the  territory  of  India  only  if  the  sale  or  purchase  either  occasions  such  import  or  is  effected  by  a 
transfer of documents of title to the goods before the goods have crossed the customs frontiers of India. 

1[(3)  Notwithstanding  anything  contained in  sub-section  (1),  the  last sale  or  purchase  of  any  goods 
preceding the sale or purchase occasioning the export of those goods out of the territory of India shall also 
be deemed to be in the course of such export, if such last sale or purchase took place after, and was for the 
purpose of complying with, the agreement or order for or in relation to such export.] 

2[(4)  The  provisions  of  sub-section  (3)  shall  not  apply  to  any  sale  or  purchase  of  goods  unless  the 
dealer selling the goods furnishes to the prescribed authority in the prescribed manner a declaration duly 
filled  and  signed  by  the  exporter  to  whom  the  goods  are  sold  in  a  prescribed  form  obtained  from  the 
prescribed authority. 

(5) Notwithstanding anything contained in sub-section (1), if any designated Indian carrier purchases 
Aviation Turbine Fuel for the purposes of its international flight, such purchase shall be deemed to take 
place in the course of the export of goods out of the territory of India. 

Explanation.—For  the  purposes  of  this  sub-section,  “designated  Indian  carrier”  means  any  carrier 

which the Central Government may, by notification in the Official Gazette, specify in this behalf.] 

1. Ins. by Act 103 of 1976, s. 3 (w.e.f. 1-4-1976). 
2. Ins. by Act 18 of 2005, s. 90 (w.e.f. 13-5-2005). 

7 

 
                                                           
CHAPTER III 

INTER-STATE SALES TAX 

6. Liability to tax on inter-State sales.—1[(1)] Subject to the other provisions contained in this Act, 
every  dealer  shall,  with  effect  from  such  date  as  the  Central  Government  may,  by  notification  in  the 
Official Gazette, appoint, not being earlier than thirty days from the date of such notification, be liable to 
pay tax under this Act on all sales 2[of goods other than electrical energy] effected by him in the course of 
inter- State trade or commerce during any year on and from the date so notified: 

3[Provided that a dealer shall not be liable to pay tax under this Act on any sale of goods which, in 
accordance with the provisions of sub-section (3) of section 5 is a sale in the course of export of those 
goods out of the territory of India.] 

4[(1A) A dealer shall be liable to pay tax under this Act on a sale of any goods effected by him in the 
course of inter-State trade or commerce notwithstanding that no tax would have been leviable (whether on 
the seller  or  the  purchaser)  under  the  sales tax law  of  the  appropriate  State if  that  sale  had  taken  place 
inside that State.] 

5[(2) Notwithstanding anything contained in sub-section (1) or sub-section (1A), where a sale of any 
goods in the course of inter-State trade or commerce has either occasioned the movement of such goods 
from one State to another or has been effected toy a transfer of documents of title to such goods during 
their  movement  from  one  State  to  another,  any  subsequent  sale  during  such  movement  effected  by  a 
transfer  of  documents  of  title  to  such  goods  to  a  registered  dealer,  if  the  goods  are  of  the  description 
referred to in sub-section (3) of section 8, shall be exempt from tax under this Act: 

Provided  that  no  such  subsequent  sale  shall  be  exempt  from  tax  under  this  sub-section  unless  the 
dealer  effecting  the  sale  furnishes  to  the  prescribed  authority  in  the  prescribed  manner  and  within  the 
prescribed time or within such further time as that authority may, for sufficient cause, permit,— 

(a)  a  certificate  duly  filled  and  signed  by  the  registered  dealer  from  whom  the  goods  were 
purchased  containing  the  prescribed  particulars  in  a  prescribed  form  obtained  from  the  prescribed 
authority; and 

(b) if the subsequent sale is made to a registered dealer, a declaration referred to in sub-section (4) 

of section 8: 

Provided further that it shall not be necessary to furnish the declaration referred to in clause (b) of the 

preceding proviso in respect of a subsequent sale of goods if,— 

(a) the sale or purchase of such goods is, under the sales tax law of the appropriate State exempt 
from tax generally or is subject to tax generally at a rate which is lower than three per cent. or such 
reduced rate as may be notified by the Central Government, by notification in the Official Gazette, 
under sub-section (1) of section 8 (whether called a tax or fee or by any other name); and 

1. Section 6 re-numbered as sub-section (1) thereof by Act 31 of 1958, s. 3 (w.e.f. 1-10-1958). 
2. Ins. by Act 61 of 1972, s. 2 (w.e.f. 1-4-1973). 
3. Ins. by Act 103 of 1976, s. 4 (w.e.f. 1-4-1973). 
4. Ins. by Act 28 of 1969, s. 3 (w.e.f. 30-8-1969). 
5. Subs. by Act 16 of 2007, s. 2, for sub-section (2) (w.e.f. 1-4-2007). 

8 

 
 
 
                                                           
(b) the dealer effecting such subsequent sale proves to the satisfaction of the authority referred to 

in the preceding proviso that such sale is of the nature referred to in this sub-section.] 

1[(3) Notwithstanding anything contained in this Act, if— 

(a) any official or personnel of— 

(i) any foreign diplomatic mission or consulate in India; or 

(ii) the United Nations or any other similar international body, entitled to privileges under any 

convention to which India is a party or under any law for the time being in force; or 

(b) any consular or diplomatic agent of any mission, the United Nations or other body referred to 
in sub-clause (i) or sub-clause (ii) of clause (a), purchases any goods for himself or for the purposes 
of such mission, United Nations or other body, then, the Central Government may, by notification in 
the Official Gazette, exempt, subject to such conditions as may be specified in the notification, the tax 
payable on the sale of such goods under this Act.] 

2[6A.  Burden  of  proof,  etc.,  in  case  of  transfer  of  goods  claimed  otherwise  than  by  way  of            

sale.—(1) Where any dealer claims that he is not liable to pay tax under this Act, in respect of any goods, 
on the ground that the movement of such goods from one State to another was occasioned by reason of 
transfer of such goods by him to any other place of his business or to his agent or principal, as the case 
may  be,  and  not  by  reason  of  sale,  the  burden  of  proving  that  the  movement  of  those  goods  was  so 
occasioned shall be on that dealer and for this purpose he may furnish to the assessing authority, within 
the  prescribed  time  or  within  such  further  time  as  that  authority  may,  for  sufficient  cause,  permit,  a 
declaration, duly filled and signed by the principal officer of the other place of business, or his agent or 
principal, as the case may be, containing the prescribed particulars in the prescribed form obtained from 
the prescribed authority, along with the evidence of dispatch of such goods  3[, and if the dealer fails to 
furnish such declaration, then, the movement of such goods shall be deemed for all purposes of this Act to 
have been occasioned as a result of sale]. 

(2) If the assessing authority is satisfied after making such inquiry as he may deem necessary that the 
particulars contained in the declaration furnished by a dealer under sub-section (1) 4[are true and that no 
inter-State sale has been effected, he may, at the time of, or at any time before, the assessment of the tax 
payable by the dealer under this Act, make an order to that effect and thereupon the movement of goods 
to  which  the  declaration  relates  shall,  subject  to  the  provisions  of  sub-section  (3),] be  deemed  for  the 
purpose of this Act to have been occasioned otherwise than as a result of sale. 

Explanation.—In this section, “assessing authority”, in relation to dealer, means the authority for the 

time being competent to assess the tax payable by the dealer under this Act.] 

5[(3) Nothing contained in sub-section (2) shall preclude reassessment by the assessing authority on 
the ground of discovery of new facts or revision by a higher authority on the ground that the findings of 
the assessing authority are contrary to law, and such reassessment or revision may be done in accordance 
with the provisions of general sales tax law of the State.] 

1. Subs. by Act 16 of 2007, s. 2, for sub-section (3) (w.e.f. 1-4-2007). 
2. Ins. by Act 61 of 1972, s. 3 (w.e.f. 1-4-1973). 
3. Ins. by Act 20 of 2002, s. 151 (w.e.f. 13-05-2002). 
4. Subs. by Act 14 of 2010, s. 78, for certain words (w.e.f. 8-5-2010). 
5. Ins. by s. 78, ibid. (w.e.f. 8-5-2010). 

9 

 
                                                           
 7. Registration of dealers.—(1) Every dealer liable to pay tax under this Act shall, within such time 
as may be prescribed for the purpose, make an application for registration under this Act to such authority 
in the appropriate State as the Central Government may, by general or special order, specify, and every 
such application shall contain such particulars as may be prescribed. 

1[(2)  Any  dealer  who is  liable  to  pay  tax  under  the  sales tax law  of  the  appropriate  State  or  where 
there  is  no  such  law  in  force  in  the  appropriate  State  or  any  part  thereof,  any  dealer  having  a  place  of 
business  in that  State or  part,  as the  case  may  be,  may,  notwithstanding  that  he  is  not liable to pay  tax 
under  this  Act,  apply  for  registration  under  this  Act  to  the  authority  referred  to  in  sub-section  (1),  and 
every such application shall contain such particulars as may be prescribed. 

Explanation.—For the purposes of this sub-section, a dealer shall be deemed to be liable to pay tax 
under the sales tax law  of the  appropriate  state  notwithstanding  that  under  such  law  a  sale  or  purchase 
made by him is exempt from tax or a refund or rebate of tax is admissible in respect thereof.] 

2[(2A)  Where  is  appears  necessary  to  the  authority  to  whom  an  application  is  made  under                   

sub-section (1) or sub-section (2) so to do for the proper realisation of the tax payable under this Act or 
for the proper custody and use of the forms referred to in clause (a) of the first proviso to sub-section (2) 
of  section  6  or  sub-section  (1)  of  section  6A  or 3[sub-section  (4)  of  section  8],  he  may,  by  an  order  in 
writing  and  for  reasons  to  be  recorded  therein,  impose  as  a  condition  for  the  issue  of  a  certificate  or 
registration a requirement that the dealer shall furnish in the prescribed manner and within such time as 
may  be  specified  in  the  order  such  security  as  may  be  so  specified,  for  all  or  any  of  the  aforesaid 
purposes.] 

(3)  If  the  authority  to  whom  an  application  under  sub-section  (1)  or  sub-section  (2)  is  made  is 

satisfied  that  the  application  is  in  conformity  with  the  provisions  of  this  Act  and  the  rules  made                
thereunder 2[and the condition, if any, imposed under sub-section (2A), has been complied with] he shall 
register  the  applicant  and  grant  to  him  a  certificate  of  registration  in  the  prescribed  form  which  shall 
specify the class or classes of goods for the purposes of sub-section (1) of section 8. 

2[(3A)  Where  it  appears  necessary  to  the  authority  granting  a  certificate  of  registration  under  this 
section so to do for the proper realisation of tax payable under this Act or for the proper custody and use 
of the forms referred to in sub-section (3A), he may, at any time while such certificate is in force, by an 
order  in  writing  and  for  reasons  to  be  recorded  therein,  require  the  dealer,  to  whom  the  certificate  has 
been granted, to furnish within such time as may be specified in the order and  in the prescribed manner 
such  security,  or,  if  the  dealer  has  already  furnished  any  security  in  pursuance  of  an  order  under  this          
sub-section or sub-section (2A), such additional security, as may be specified in the order, for all or any of 
the aforesaid purposes. 

4[(3B)  No  dealer  shall  be  required  to  furnish  any  security  and  sub-section  (2A)  or  any  security  or 

additional security under sub-section (3A), unless he has been given an opportunity of being heard. 

(3BB) The amount of security which a dealer may be required to furnish under sub-section (2A) or 
sub-section  (3A)  or  the  aggregate  of the amount  of  such  security  and  the  amount  of  additional security 
which  may  be  required  to  furnish  under  sub-section  (3A),  by  the  authority  referred  to  therein  shall  not 
exceed— 

(a)  in  the  case  of  a  dealer  other  than  a  dealer  who  has  made  an  application,  or  who  has  been 
registered in pursuance of an application, under sub-section (2), a sum equal to the tax payable under 

1. Subs. by Act 31 of 1958, s. 4, for sub-section (2) (w.e.f. 1-10-1958). 
2. Ins. by Act 61 of 1972, s. 4 (w.e.f. 1-4-1973). 
3. Subs. by Act 16 of 2007, s. 3, for “clause (a) of sub-section (4) of section 8” (w.e.f. 1-4-2007). 
4. Subs. by Act 103 of 1976, s. 5, for sub-section (3B) (w.e.f. 7-9-1976). 

10 

 
                                                           
this Act, in accordance with the estimate of such authority, on the turnover of such dealer for the year 
in which such security or, as the case may be, additional security is required to be furnished; and 

(b) in the case of a dealer who has made an application, or who has been registered in pursuance 
of an application, under sub-section (2), a sum equal to the tax leviable under this Act, in accordance 
with  the  estimate  of  such  authority  on  the  sales  to  such  dealer  in  the  course  of  inter-State  trade  or 
commerce in the year in which such security or, as the case may be additional security is required to 
be furnished, had such dealer been not registered under this Act.] 

(3C)  Where  the  security  furnished  by  a  dealer  under  sub-section  (2A)  or  sub-section  (3A)  is  in  the 
form of a surety bond and the surety becomes insolvent or dies, the dealer shall, within thirty days of the 
occurrence of any of the aforesaid events, inform the authority granting the certificate of registration and 
shall  within  ninety  days  of  such  occurrence  furnish  a  fresh  surety  bond  or  furnish  in  the  prescribed 
manner other security for the amount of the bond. 

(3D) The authority granting the certificate of registration may by order and for good and sufficient 

cause forfeit the whole or any part of the security furnished by a dealer,— 

(a) for realising any amount of tax or penalty payable by the dealer; 

(b) if the dealer is found to have misused any of the forms referred to in sub-section (2A) to have 

failed to keep them in proper custody: 

Provided that no order shall be passed under this sub-section without giving the dealer an opportunity 

of being heard. 

(3E)  Where  by  reason  of  an  order  under  sub-section  (3D),  the  security  furnished  by  any  dealer  is 
rendered  insufficient,  he  shall  make  up  the  deficiency  is  such  manner  and  within  such  time  as  may  be 
prescribed. 

(3F) The authority issuing the forms referred to in sub-section (2A) may refuse to issue such forms to 
a dealer who has failed to comply with an order under that sub-section or sub-section (3A), or with the 
provisions or sub-section (3C) or sub-section (3E), until the dealer has complied with such order or such 
provisions, as the case may be. 

(3G) The authority granting a certificate of registration may, on application by the dealer to whom it 
has  been  granted,  order  the  refund  of  any  amount  or  part  thereof  deposited  by  the  dealer  by  way  of 
security under this section, if it is not required for the purpose of this Act. 

(3H)  Any  person  aggrieved  by  an  order  passed  under  sub-section  (2A),  sub-section  (3A),                     

sub-section (3D) or sub-section (3G) may, within thirty days of the service of the order on him, but after 
furnishing  the  security,  prefer,  in  such  form  and  manner  as  may  be  prescribed,  an  appeal  against  such 
order  to  such  authority  (here  after  in  this  section  referred  to  as  the  “appellate  authority”)  as  may  be 
prescribed: 

Provided  that  the  appellate  authority  may,  for  sufficient  cause,  permit  such  person  to  present  the 

appeal,— 

(a) after the expiry of the said period of thirty days; or 

(b) without furnishing the whole or any part of such security. 

11 

 
(3-I) The procedure to be followed in hearing any appeal under sub-section (3H), and the fees payable 

in respect of such appeals shall be such as may be prescribed. 

(3J) The order passed by the appellate authority in any appeal under sub-section (3H) shall be final.] 

1[(4) A certificate of registration granted under this section may— 

(a)  either  on  the  application  of  the  dealer  to  whom  it  has  been  granted  or,  where  no  such 
application has been made, after due notice to the dealer, be amended by the authority granting it if he 
is  satisfied  that  by  reason  of  the  registered  dealer  having  changed  the  name,  place  or  nature  of  his 
business or the class or classes of goods in which he carries on business or for any other reason the 
certificate of registration granted to him requires to be amended; or 

(b) be cancelled by the authority granting it, where he is satisfied, after due notice to the dealer to 
whom it has been granted, that he has ceased to carry on business 2[or has ceased to exist or has failed 
without  sufficient  cause,  to  comply  with  an  order  under  sub-section  (3A)  or  with  the  provisions  of 
sub-section (3C) or sub-section (3E) or has failed to pay any tax or penalty payable under this Act], or 
in the case of a dealer registered under sub-section (2) has ceased to be liable to pay tax under the 
sales tax of the appropriate State or for any other sufficient reason.] 

(5) A registered dealer may apply in the prescribed manner not later than six months before the end of 
a year to the authority which granted his certificate of registration for the cancellation of such registration, 
and  the  authority  shall,  unless  the  dealer  is  liable  to  pay  tax  under  this  Act,  cancel  the  registration 
accordingly, and where he does so, the cancellation shall take effect from the end of the year. 

8. Rates of tax on sales in the course of inter-State trade or commerce.—3[  4[(1) Every dealer, 
who in the course of inter-State trade or commence, sells to a registered dealer goods of the description 
referred to in sub-section (3), shall be liable to pay tax under this Act, which shall be three per cent. of his 
turnover or at the rate applicable to the sale or purchase of such goods inside the appropriate State under 
the sales tax law of that State, whichever is lower: 

Provided that the Central Government may, by notification in the Official Gazette, reduce the rate of 

tax under this sub-section. 

(2) The tax payable by any dealer on his turnover in so far as the turnover or any part thereof relates 
to the sale of goods in the course of inter-State trade or commerce not falling within sub-section (1), shall 
be at the rate applicable to the sale or purchase of such goods inside the appropriate State under the sales 
tax law of that State. 

Explanation.—For the purposes of this sub-section, a dealer shall be deemed to be a dealer liable to 
pay tax under the sales tax law of the appropriate State, notwithstanding that he, in fact, may not be so 
liable under that law.] 

5*   
(3) 6[The goods referred to in sub-section (1),—] 

* 

* 

7* 

* 

* 

* 

* 

* 

* 

1. Subs. by Act 31 of 1958, s. 4, for sub-section (4) (w.e.f. 1-10-1958). 
2. Subs. by Act 61 of 1972, s. 4, for “or has ceased to exist” (w.e.f. 1-4-1973). 
3. Subs. by Act 31 of 1958, s. 5, for sub-sections (1), (2), (3) and (4) (w.e.f. 1-10-1958). 
4. Subs. by Act 16 of 2007, s. 4, for sub-sections (1) and (2) (w.e.f. 1-4-2007). 
5. Sub-section (2A) omitted by Act 20 of 2002, s. 150 (w.e.f. 13-5-2002). 
6. Subs. by Act 16 of 2007, s. 4, for “The goods referred to in clauses (b) of sub-section (1)” (w.e.f. 1-4-2007). 
7. Cl. (a) omitted by Act 8 of 1963, s. 2 (w.e.f. 1-4-1963). 

12 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                           
1[(b) are goods of the class or classes specified in the certificate of registration of the registered 
dealer purchasing the goods as being intended for re-sale by him or subject to any rules made by the 
Central Government in this behalf, for use by him in the manufacture or processing for sale of goods 
specified under clause (d) of section 2;] 

(c)  are  containers  or  other  materials  specified  in  the  certificate  of  registration  of  the  registered 
dealer purchasing the goods, being containers or materials intended for being used for the packing of 
goods for sale; 

(d)  are  containers  or  other  materials  used  for  the  packing  of  any  goods  or  classes  of  goods 
specified  in  the  certificate  of  registration  referred  to  in 2***  clause  (b)  or  for  the  packing  of  any 
containers or other materials specified in the certificate of registration referred to in clause (c). 

3[(4) The provisions of sub-section (1) shall not apply to any sale in the course of inter-State trade or 
commerce  unless  the  dealer  selling  the  goods  furnishes  to  the  prescribed  authority  in  the  prescribed 
manner  a  declaration  duly  filled  and  signed  by  the  registered  dealer  to  whom  the  goods  are  sold 
containing the prescribed particulars in a prescribed form obtained from the prescribed authority: 

Provided  that the  declaration  is  furnished  within the prescribed time  or  within such  further time  as 

that authority may, for sufficient cause, permit.]] 

4[(5)  Notwithstanding  anything  contained  in  this  section,  the  State  Government  may, 6[on  the 
fulfillment  of  the  requirements  laid  down  in  sub-section  (4)  by  the  dealer,]  if  it  is  satisfied  that  it  is 
necessary  so  to  do  in  the  public  interest,  by  notification  in  the  Official  Gazette  and  subject  to  such 
conditions as may be specified therein direct,— 

(a) that no tax under this Act shall be payable by any dealer having his place of business in the 
State in respect of the sales by him, in the course of inter-State trade or commerce 5[to a registered 
dealer 6***],  from  any  such  place  of  business  of  any  such  goods  or  classes  of  goods  as  may  be 
specified in the notification, or that the tax on such sales shall be calculated at such lower rates than 
those specified in sub-section (1) 7*** as may be mentioned in the notification; 

(b) that in respect of all sales of goods or sales of such classes of goods as may by specified in the 
notification,  which  are  made,  in  the  course  of  inter-State  trade  or  commerce 6[to  a  registered 
dealer 7***], by any dealer having his place of business in the State or by any class of such dealers as 
may be specified in the notification to any person or to such class of persons as may be specified in 
the notification, no tax under this Act shall be payable or the tax on such sales shall be calculated at 
such lower rates than those specified in sub-section (1) or sub-section (2)  7*** as may be mentioned 
in the notification.] 
7[(6)  Notwithstanding  anything  contained in this  section,  no  tax  under  this  Act  shall  be  payable  by 
any  dealer  in  respect  of  sale  of  any  goods  made  by  such  dealer,  in  the  course  of  inter-State  trade  or 
commerce  to  a  registered  dealer  for  the  purpose  of  setting  up,  operation,  maintenance,  manufacture, 
trading, production, processing, assembling, repairing, reconditioning,   re-engineering, packaging or for 
use  as  packing  material  or  packing  accessories  in  a  unit  located  in  any  special  economic  zone  or  for 
development, operation and maintenance of special economic zone by the developer of the special  

1. Subs. by Act 13 of 2021, s. 150, for clause (b) (w.e.f. 28-3-2021). 
2. The words, brackets and letter “clause (a) or” omitted by Act 8 of 1963, s. 150 (w.e.f. 1-4-1963). 
3. Subs. by Act 16 of 2007, s. 4, for sub-section (4) (w.e.f. 1-4-2007). 
4. Subs. by Act 61 of 1972, s. 5, for sub-section (5) (w.e.f. 1-4-1973). 
5. Ins. by Act 20 of 2002, s. 152 (w.e.f. 13-5-2002). 
6. The words “or the Government” omitted by Act 16 of 2007, s. 4 (w.e.f. 1-4-2007). 
7. Subs. by Act 23 of 2004, s. 118, for sub-section (6) (w.e.f. 10-09-2004). 

13 

 
 
 
                                                           
economic zone, if such registered dealer has been authorised to establish such unit or to develop, operate 
and  maintain  such  special economic  zone  by  the  authority  specified  by  the  Central  Government in  this 
behalf.] 

(7) The goods referred to in sub-section (6) shall be the goods of such class or classes of goods as 

specified in the certificate of registration of the registered dealer referred to in that sub-section. 

(8) The provisions of sub-sections (6) and (7) shall not apply to any sale of goods made in the course 
of  inter-State  trade  or  commerce  unless  the  dealer  selling  such  goods  furnishes  to  the 1[prescribed 
authority  referred  to  in  sub-section  (4)  a  declaration  in  the  prescribed  manner  on  the  prescribed  form 
obtained from the authority specified by the Central Government under sub-section (6)] duly filled in and 
signed by the registered dealer to whom such goods are sold. 

Explanation.--For  the  purposes  of  sub-section  (6),  the  expression  “special  economic  zone”  has  the 
meaning assigned to it in clause (iii) to  Explanation 2 to the proviso to section 3 of the Central Excise 
Act, 1944 (1 of 1944).] 

2[8A. Determination of turnover.—(1) In determining the turnover of a dealer for the purposes of 

this Act, the following deductions shall be made from the aggregate of the sale prices, namely:— 

(a) the amount arrived at by applying the following formula— 
rate of tax x aggregate of sale prices 

: 

     100 plus rate of tax 

Provided that no deduction on the basis of the above formula shall be made if the amount by way 
of  tax  collected  by  a  registered  dealer,  in  accordance  with  the  provisions  of  this  Act,  has  been 
otherwise deducted from the aggregate of sale prices. 

Explanation.—Where the turnover of a dealer is taxable at different rates, the aforesaid formula 

shall be applied separately in respect of each part of the turnover liable to a different rates of tax; 
(b) the sale price of all goods returned to the dealer by the purchasers of such goods,— 

(i)  within  a  period  of  three  months  from  the  date  of  delivery  of  the  goods,  in  the  case 

of  goods returned before the 14th day of May, 1966; 

(ii) within a period of six months from the date of delivery of the goods, in the case of goods 

returned on or after the 14th day of may, 1966: 

Provided  that  satisfactory  evidence  of  such  return  of  goods  and  of  refund  or  adjustment  in 
accounts of the sale price thereof is produced before the authority competent to assess or, as the case 
may be, re-assess the tax payable by the dealer under this Act; and 

(c)  such  other  deductions  as  the  Central  Government  may,  having  regard  to  the  prevalent 

market conditions, facility of trade and interests of consumers, prescribe. 

(2)  Save  as  otherwise  provided  in  sub-section  (1),  in  determining  the  turn  over  of  a  dealer  for  the 

purposes of this Act, no deduction shall be made from the aggregate of the sale prices.] 

3[ 4[9. Levy and collection of tax and penalties.—(1) The tax payable by any dealer under this Act 
on sales of goods effected by him in the course of inter-State trade or commerce, whether such sales fall 
within  clause (a)  or  clause  (b)  of  section  3,  shall  be levied  by  the  Government  of  India  and  the  tax  so 
levied shall be collected by that Government in accordance with the provisions of sub-section (2), in the 
State from which the movement of the goods commenced: 

1. Subs. by Act 23 of 2004, s. 118, for certain words (w.e.f. 10-9-2004). 
2. Ins. by Act 28 of 1969, s. 5 (retrospectively). 
3. Subs. by Act 31 of 1958, s. 6, for the original section 9 (w.e.f. 1-10-1958). 
4. Subs. by Act 28 of 1969, s. 6, for section 9 (retrospectively). 

14 

 
                                                           
1[Provided that, in the case of a sale of goods during their movement from one State of another, being 
a sale subsequent to the first sale in respect of the same goods and being also a sale which does not fall 
within sub-section (2) of section 6, the tax shall be levied and collected— 

(a) where such subsequent sale has been effected by a registered dealer, in the State from which 
the registered dealer obtained or, as the case may be, could have obtained, the form prescribed for the 
purpose of  2[sub-section (4) of section 8] in connection with the purchase of such goods, and 

(b)  where  such  subsequent  sale  has  been  effected  by  an  unregistered  dealer  in  the  State  from 

which such subsequent sale has been effected.] 

(2) Subject to the other provisions of this Act and the rules made thereunder, the authorities for the 
time being empowered to assess, re-assess, collect and enforce payment of any tax under the general sales 
tax law of the appropriate State shall, on behalf of the Government of India, assess re-assess, collect and 
enforce payment of tax, including any  3[interest or penalty,] payable by a dealer under this Act as if the 
tax  or  3[interest  or  penalty]  payable  by  such  a  dealer  under  this  Act  is  a  tax  or  3[interest  or  penalty] 
payable under the general sales tax law of the State; and for this purpose they may exercise all or any of 
the  powers  they  have  under  the  general  sales  tax  law  of  the  State;  and  the  provisions  of  such  law, 
including provisions relating to returns, provisional assessment, advance payment of tax, registration of 
the  transferee  of  any  business,  imposition  of  the  tax  liability  of  a  person  carrying  on  business  on  the 
transfer of, or successor to, such business, transfer of liability of any firm of Hindu undivided family to 
pay tax in the event of the dissolution of such firm or partition of such family, recovery of tax from third 
parties,  appeals,  reviews,  provisions,  references,  4[refunds,  rebated,  penalties,]  3[interest  or  penalty]] 
5[charging or payment of interest,] compounding of offences and treatment of documents furnished by a 
dealer as confidential, shall apply accordingly: 

Provided  that  if  in  any  State  or  part  thereof  there  is  no  general  sales  tax  law  in  force,  the  Central 
Government  may,  be  rules  made  in  this  behalf  make  necessary  provision  for  all  or  any  of  the  matter 
specified in this sub-section. 

5[(2A) All the 6[provisions relating to offences, interest and penalties] (including provisions relating to 
penalties in lieu of prosecution for an offence or in addition to the penalties or punishment for an offence 
but excluding the provisions relating to matters provided for in section 10 and 10A) of the general sales 
tax  law  of  each  State  shall,  with  necessary  modifications,  apply  in  relation  to  the  assessment,                  
re-assessment, collection and the enforcement of payment of any tax required to be collected under this 
Act in such State or in relation to any process connected with such assessment, re-assessment, collection 
or enforcement of payment as if the tax under this Act were a tax under such sales tax law.] 

7[(2B) If the tax payable by any dealer under this Act is not paid in time, the dealer shall be liable to 
pay interest for delayed payment of such tax and all the provisions for delayed payment of such tax and 
all the provisions relating to due date for payment of tax, rate of interest for delayed payment of tax and 
assessment  and  collection  of  interest  for  delayed  payment  of  tax,  of  the  general  sales  tax  law  of  each 
State, shall apply in relation to due date for payment of tax, rate of interest for delayed payment of tax, 
and assessment and collection of interest for delayed payment of tax under this Act in such States as if the 
tax and the interest payable under this Act were a tax and an interest under such sales tax law.] 

1. The proviso subs. by Act 103 of 1976, s. 6 (w.e.f. 7-9-1976). 
2. Subs. by Act 16 of 2007, s. 5, for “clause (a) of sub-section (4) of section 8” (w.e.f. 1-4-2007). 
3. Subs. by Act 10 of 2000, s. 119, for “penalty” (w.e.f. 12-5-2000). 
4. Subs. by Act 61 of 1972, s. 6, for “refunds, penalties” (w.e.f. 1-4-1973). 
5. Ins. by Act 103 of 1976, s. 6 (retrospectively). 
6. Subs. by Act 10 of 2000, s. 119, for “provisions relating to offences and penalties” (w.e.f. 12-5-2000). 
7. Ins. by s. 119, ibid. (w.e.f. 12-5-2000). 

15 

 
                                                           
 
 
(3)  The  proceeds  in  any  financial  year  of  any  tax,  1[including  any  interest  or  penalty]  levied  and 
collected under this Act in any State (other than a Union territory) on behalf on the Government of India 
shall be assigned to the State and shall be retained by it; and the proceeds attributable to Union territories 
shall form part of the Consolidated Fund of India.] 

9A. Collection of tax to be only by registered dealers.—No person who is not a registered dealer 
shall collect in respect of any sale by him of goods in the course of Inter-State trade or commerce any 
amount by way of tax under this Act, and no registered dealer shall make may such collection except in 
accordance with this Act and the rules made thereunder.] 

2[9B. Rounding off of tax, etc.—The amount of tax, penalty, fine or any other sum payable, and the 
amount of refund due, under the provisions of this Act shall be rounded off to the nearest rupees and, for 
the purpose, where such amount contains a part of a rupee consisting of paise, then, if such part is fifty 
paise or more, it shall be increased to one rupee and if such part is less than fifty paise, it shall be ignored: 

Provided  that  nothing  in  this  section  shall  apply  for  the  purpose  of  collection  by  a  dealer  of  any 
amount by way of tax under this Act in respect of any sale by him of goods in the course of inter-State 
trade or commerce.] 

10. Penalties.—If any person— 

3[(a)  furnishes  a 4***  declaration  under  sub-section  (2)  of  section  6  or  sub-section  (1)  of               

section 6A or sub-section (4) 5[sub-section (8)] which he knows, or has reason to believe, to be false; 
or 

(aa) fails to get himself registered as required by section 7 or fails to comply with an order under 

sub-section (3A) or with the requirements of sub-section (3C) or sub-section (3E) of that section;] 

(b) being a registered dealer, falsely represents when purchasing any class of goods that goods of 

such class are covered by his certificate of registration; or 

(c)  not  being  a  registered  dealer,  falsely  represents  when  purchasing  goods  in  the  course  of         

inter- State trade or commerce that he is a registered dealer; or 

(d) after purchasing any goods for any of the purposes specified in  6[clause (b) or clause (c) or 
clause (d)]  of  sub- section (3)  5[or  sub-section (6)]  of  section  8 fails,  without reasonable  excuse,  to 
make use of the goods for any such purpose; 

(e)  has 

in  his  possession  any  form  prescribed  for 

the  purpose  of  sub-section  (4)                               

5[or sub-section (8)] of section 8 which has  not been obtained by him or by his principal or by his 
agent in accordance with the provisions of this Act or any rules made there under; 

7[(f)  collects  any  amount  by  way  of  tax  in  contravention  of  the  provisions  contained  in               

section 9A,] 

he shall be punishable with simple imprisonment which may extend to six months, or with fine or with 
both, and when the offence is a continuing offence, with a daily fine which may extend to fifty rupees for 
every day during which the offence continues. 

1. Subs. by Act 10 of 2000, s. 119, for “including any penalty” (w.e.f. 12-5-2000). 
2. Ins. by Act 61 of 1972, s. 7 (w.e.f. 1-4-1973). 
3. Subs. by s. 8, ibid., for clause (a) (w.e.f. 1-4-1973). 
4. The words “certificate or” omitted by Act 16 of 2007, s. 6 (w.e.f. 1-04-2007). 
5. Ins. by Act 20 of 2002, s. 153 (w.e.f. 13-05-2002). 
6. Subs. by Act 61 of 1972, s. 8, for “clause (b)” (w.e.f. 1-4-1973). 
7. Ins. by Act 31 of 1958, s. 7 (w.e.f. 1-10-1958). 

16 

 
                                                           
 
 
1[10A.  Imposition  of  penalty  in  lieu  of  prosecution.—2[(1)]  If  any  person  purchasing  goods  is 
guilty of an offence under clause (b) or clause (c) or clause (d) of section 10, the authority who granted to 
him or, as the case may be, is competent to grant to him a certificate of registration under this Act may, 
after giving him a reasonable opportunity of being heard, by order in writing impose upon him by way of 
penalty  a  sum  not  exceeding  one-and-a-half  times  3[the  tax  which  would  have  been  levied  under                   
sub-section (2) of section 8 in respect of the sale to him of the goods, if the sale had been a sale falling 
within that sub-section]: 

Provided that no prosecution for an offence under section 10 shall be instituted in respect of the same 

facts on which a penalty has been imposed under this section. 

4[(2)  The  penalty  imposed  upon  any  dealer  under  sub-section  (1)  shall  be  collected  by  the 

Government of India in the manner provided in sub-section (2) of section 9— 

(a) in the case of an offence falling under clause (b) or clause (d) of section 10, in the State in 
which the person purchasing the goods obtained the form prescribed for the purposes of  5[sub-section 
(4) of section 8] in connection with the purchase of such goods; 

(b) in the case of an offence falling under clause (c) of section 10, in the State in which the person 

purchasing the goods should have registered himself if the offence had not been committed.] 

11.  Cognizance  of  offences.—(1)  No  court  shall  take  cognizance  of  any  offence  punishable  under 
this  Act  or  the  rules  made  thereunder  except  with  the  previous  sanction  of  the  Government  within  the 
local limits of whose jurisdiction the offence has been committed or of such officer of that Government as 
it  may,  by  general  or  special  order,  specify  in  this  behalf;  and  no  court  inferior to  that  of  a  presidency 
magistrate or a magistrate of the first class shall try and such offence. 

(2) All offences punishable under this Act shall be cognizable and bailable. 

12.  Indemnity.—No  suit,  prosecution  or  other  legal  proceeding  shall  lie  against  any  officer  of 
Government for anything which is in good faith done or intended to be done under this Act or the rules 
made thereunder. 

13. Power to make rules.—(1) The Central Government may, by notification in the Official Gazette, 

make rules providing for— 

(a) the manner in which applications for registration may be made under this Act, the particulars 
to be contained therein, the procedure for the grant of such registration, the circumstances  in which 
registration may be refused and the form in which the certificate of registration may be given; 

6[(aa) the manner of determination of the sale price and the deduction from the total consideration 

for a works contract under the proviso to clause (h) of section 2;] 

7[(ab)] the form and the manner for furnishing declaration under sub-section (8) of section 8;] 

1. Ins. by Act 31 of 1958, s. 8 (w.e.f. 1-10-1958). 
2. Section 10A re-numbered as sub-section (1) thereof by Act 28 of 1969, s. 7 (w.r.e.f. 1-10-1958). 
3. Subs. by Act 61 of 1972, s.9, for certain words (w.e.f. 1-4-1973). 
4. Ins. by Act 28 of 1969, section 7 (w.r.e.f. 1-10-1958). 
5. Subs. by Act 16 of 2007, s. 5, for "clause (a) of sub-section (4) of section 8" (w.e.f. 1-4-2007). 
6. Ins. by Act 18 of 2005, s. 92 (w.e.f. 13-5-2005). 
7. Clause (aa) lettered as clause (ab) thereof by s. 92, ibid. (w.e.f. 13-5-2005). 

17 

 
 
 
                                                           
(b)  the  period  turnover,  the  manner  in  which  the  turnover  in  relation  to  the  sale  of  any  goods 
under  this  Act  shall  be  determined,  and  the  deductions  which  may  be  made 1[under  clause  (c)  of           
sub-section (1) of section 8A] in the process of such determination; 

(c)  the  cases  and  circumstances  in  which,  and  the  conditions  subject  to  which,  any 

registration granted under this Act may be cancelled; 

2[(d) the form in which and the particulars to be contained in the declaration or certificate to be 
given under this Act 1[the State of origin or such form or certificate and the time within which any 
such certificate or declaration shall be produced or furnished]; 

(e) the enumeration of goods or class of goods used in the manufacture or processing of goods for 

sale or in mining or in the generation or distribution of electricity or any other form of power; 

(f)  the  matters  in  respect  of  which  provision  may  be  made  under  the  provision  to 3[sub-section 

(2)] of section 9; 

(g) the fees payable in respect of applications under this Act.] 

4[(h) the proper functioning of the Authority constituted under section 19; 

(i)  the  salaries  and  allowances  payable  to,  and  the  terms  and  conditions  of  service  of,  the 

Chairman and Members under sub-section (3) of section 19; 

(j) any other matter as may be prescribed.] 

5[(2) Every rule made by the Central Government under sub-section (1) shall be laid, as soon as may 
be after it is made, before each House of Parliament, while it is in session, for a total period of thirty days 
which may be comprised in one session or in two or more successive sessions, and if, before the expiry of 
the session immediately following the session or the successive sessions aforesaid, both Houses agree in 
making any modification in the rule or both Houses agree that the rule should not be made, the rule shall 
thereafter have effect only in such modified form or be of no effect, as the case may be; so, however, that 
any such modification or annulment shall be without prejudice to the validity of anything previously done 
under that rule.] 

(3) The State Government may  make rules, not inconsistent with the provisions of this Act and the 

rules made under sub-section (1), to carry out the purposes of this Act. 

(4)  In  particular  and  without  prejudice  to  the  powers  conferred  by  sub-section  (3),  the  State 

Government may make rules for all or any of the following purposes, namely:— 

(a) the publication of lists of registered dealers, of the amendments made in such lists from time 

to time, and the particulars to be contained in such lists; 

6[(aa) 

the  manner 

in  which  security  may  be  furnished  under  sub-section  (2A)  or                           

sub-section (3A) or sub-section (3C) of section 7 and the manner in which and the time within which 
any deficiency may be made up under sub-section (3E) of that section;] 

(b) the form and manner in which accounts relating to sales in the course of inter-State trade 

or commerce shall be kept by registered dealers; 

1. Ins. by Act 61 of 1972, s. 10 (w.e.f. 1-4-1973). 
2. Subs. by Act 31 of 1958, s. 9, for clause (d) (w.e.f. 1-10-1958). 
3. Subs. by Act 28 of 1969, s. 8, for “sub-section (3)” (retrospectively). 
4. Ins. by Act 41 of 2001, s. 2 (w.e.f. 17-3-2005). 
5. Subs. by Act 61 of 1972, s. 10, for sub-section (2) (w.e.f. 1-4-1973). 
6. Ins. by s. 10, ibid. (w.e.f. 1-4-1973). 

18 

 
                                                           
(c)  the  furnishing  of  any  information  relating  to  the  stocks  of  goods  of,  purchases,  sales 
and deliveries  of  books  by,  any  dealer  or  any  other  information  relating  to  his  business  as  may 
be necessary for the purposes of this Act; 

(d) the inspection of any books, accounts or documents required to be kept under this Act, the entry 
into any premises at all reasonable times for the purposes of searching for any such books, accounts or 
documents  kept  or  suspected  to  be  kept  in  such  premises  and  the  seizure  of  such  books,  accounts  or 
documents; 

1[(e)  the  authority  from  whom,  the  conditions  subject  to  which  and  fees  subject  to  payment 
of which  any  form  of  certificate  prescribed  under  clause  (a)  of  the  first  proviso  to  sub-section  (2) of 
section 6 or of declaration prescribed under sub-section (1) of section 6A or sub-section (4) of section 8 
may be obtained, the manner in which such forms shall be kept in custody and records relating thereto 
maintained and the manner in which any such form may be used and any such certificate or declaration 
may be furnished; 

(ee)  the  form  and  manner  in  which,  and  the  authority  to  whom,  an  appeal  may  be  preferred 
under sub-section (3H) of section 7, the procedure to be followed in hearing such appeals and the fees 
payable in respect of such appeals;] 

(f) in the case of an undivided Hindu Family, association, club, society, firm or company or in the 
case  of  a  person  who  carries  on  business  as  a  guardian  or  trustee  or  otherwise  on  behalf  of  another 
person, the  furnishing  of  a  declaration  stating  the name  of  the  person  who  shall  be  deemed  to  be  the 
manager  in  relation to the business of the  dealer in the  State and the form  in which  such  declaration 
may be given; 

(g) the time within which, the manner in which and 2[the authorities to whom] any change in the 
ownership of any business or in 3[the name, place or nature] of any business carried on by  any dealer 
shall be furnished. 

(5) In making any rule under this section 4[the Central Government or, as the case may be, the State 
Government]  may  direct  that  a  breach  thereof  shall  be  punishable  with  fine  which  may  extend  to  five 
hundred rupees and when the offence is a continuing offence, with a daily fine which may extend to fifty 
rupees for every day during which the offence continues. 

GOODS OF SPECIAL IMPORTANCE IN INTER-STATE TRADE OR COMMERCE 

CHAPTER IV 

14.  [Certain  goods  to  be  of  special  importance  in  inter-State  trade  or  commerce.]  Omitted  by  the 

Taxation Laws (Amendment) Act, 2017 (18 of 2017), s. 14 (w.e.f. 1-7-2017). 

15. [Restrictions and conditions in regard to tax on sales or purchases of declared goods.] Omitted by 

s. 15, ibid. (w.e.f. 1-7-2017). 

5[CHAPTER V 

LIABILITY IN SPECIAL CASES 

16. Definitions.—In this Chapter,— 

(a)  “appropriate  authority”,  in  relation  to  a  company,  means  the  authority  competent  to  assess 

tax on the company; 

1. Subs. by Act 61 of 1972, s.10, for clause (e) (w.e.f. 1-4-1973). 
2. Subs. by Act 31 of 1958, s. 9, for “the authorities to which” ( w.e.f. 1-10-1958). 
3. Subs. by Act 31 of 1953, s. 9, for “the nature” (w.e.f. 1-10-1958). 
4. Subs. by Act 61 of 1972, s.10, for “the State Government”  (w.e.f. 1-4-1973). 
5. Ins. by s. 13, ibid. (w.e.f 1-4-1973). 

19 

 
                                                           
(b)  “company”  and  “private  company”  have  the  meanings  respectively  assigned  to  them  by 

clauses (i) and (iii) of sub-section (1) of section 3 of the Companies Act, 1956  (1 of 1956). 

17. Company in liquidation.—(1) Every person— 

(a) who is the liquidator of any company which is being wound up, whether under the orders of 

a court or otherwise; or 

(b)  who  has  been  appointed  the  receiver  of  any  assets  of  a  company,  hereinafter  referred  to  as 
the liquidator  shall,  within  thirty  days  after  he  has  become  such  liquidator,  give  notice  of 
his appointment as such to the appropriate authority. 

(2)  The  appropriate  authority  shall,  after  making  such  inquiry  of  calling  for  such  information  as  it 
may deem fit, notify to the liquidator within three months form the date on which he receives notice of the 
appointment  of  the  liquidator  the  amount  which,  in  the  opinion  of  the  appropriate  authority  would  be 
sufficient to provide for any tax which is then, or is likely thereafter to become, payable by the company. 

(3) The liquidator shall not part with any of the assets of the company or the properties in his hands 
until he has been notified by the appropriate authority under sub-section (2) and no being so notified, shall 
set aside an amount equal to the amount notified and, until he so sets aside such amount, shall not part 
with any of the assets of the company or the properties in his hands: 

Provided that nothing contained in this sub-section shall debar the liquidator from parting with such 
assets or properties in compliance with any order of a court or for the purpose of the payment of the tax 
payable by the company under this Act or for making any payment to secured creditors whose debts are 
entitled under law to priority of payment over debts due to Government on the date of liquidation or for 
meeting  such  costs  and  expenses  of  the  winding  up  of  the  company  as  are  in  the  opinion  of  the 
appropriate authority reasonable. 

(4) If the liquidator fails to give the notice in accordance with sub-section (1) or fails or set aside the 
amount as required by, or parts with any of the assets of the company or the properties in his hands in 
contravention of the provisions of sub-section (3), he shall be personally liable for the payment of the tax 
which the company would be liable to pay: 

Provided that if the amount of any tax payable by the company is notified under sub-section (2), the 

personal liability of the liquidator under this sub-section shall be to the extent of such amount. 

(5) Where there are more liquidators than one, the obligations and liabilities attached to the liquidator 

under this section shall attach to all the liquidators jointly and severally. 

(6) The provisions of this section shall have effect notwithstanding anything to the contrary contained 

in any other law for the time being in force. 

18. Liability of directors of private company in liquidation.—Notwithstanding anything contained 
in the Companies Act, 1956 (1 of 1956), when any private company is wound up after the commencement 
of this Act, and any tax assessed on the company under this Act for any period, whether before or in the 
course of or after its liquidation, cannot be recovered, then, every person who was a director of the private 
company at any time during the period for which the tax is due shall be jointly and severally liable for the 
payment  of  such  tax  unless  he  proves  that  the  non-recovery  cannot  be  attributed  to  any  gross  neglect, 
misfeasance or breach of duty on his part in relation to the affairs of company.] 

20 

 
1[CHAPTER VA 

APPEALS TO THE HIGHEST APPELLATE AUTHORITY OF THE STATE 

18A. Appeals to highest appellate authority of State.—(1) Notwithstanding anything contained in a 
State  Act,  any  person  aggrieved  by  an  order  made  by  the  assessing  authority  under  sub-section  (2)  of 
section 6A, or an order made under the provisions of sub-section (3) of that section, may, notwithstanding 
anything contained in the general sales tax law of the appropriate State, prefer an appeal to the highest 
appellate authority of the State against such order: 

Provided that any incidental issues including the rate of tax, computation of assessable turnover and 

penalty may be raised in such appeal. 

(2) An appeal under sub-section (1) shall be filed within sixty days from the date2 on which the order 

referred to in that sub-section is communicated to the aggrieved person: 

Provided that any appeal forwarded by the highest appellate authority of a State to the first appellate 
authority  under  the  proviso  to  sub-section  (2)  of  section  25  and  pending  before  such  authority 
immediately before the appointed day shall be transferred, on such appointed day, to the highest appellate 
authority of the State and the same shall be treated as an appeal filed under sub-section (1) and dealt with 
accordingly. 

Explanation.—For the purposes of this sub-section, “appointed day” means such date as the Central 

Government may, by notification in the Official Gazette, appoint. 

(3)  The  highest  appellate  authority  of  a  State  may,  after  giving  both  the  parties  an  opportunity  of 

being heard, pass appropriate order. 

(4) The highest appellate authority of the State may, as far as practicable, hear and decide such appeal 

within a period of six months from the date of filing of the appeal. 

(5) Notwithstanding anything contained in a State Act, the highest appellate authority of a State may, 
on  the  application  of  the  appellant  and  after  considering  relevant  facts,  including  the  deposit  of  any 
amount towards local or central sales tax in other States on the same goods, pass an order of stay subject 
to such terms and conditions as it thinks fit, and such order may, inter alia, indicate the portion of tax as 
assessed, to be deposited prior to admission of the appeal. 

Explanation.—For  the  purposes  of  this  section  and  sections  20,  21,  22  and  25,  “highest  appellate 
authority of a State”, with its grammatical variations, means any authority or tribunal or court, except the 
High  Court,  established  or  constituted  under  the  general  sales  tax  law  of  a  State,  by  whatever  name 
called.] 

2[CHAPTER VI 

AUTHORITY TO SETTLE DISPUTES IN CURSE OF INTER -STATE TRADE OR COMMERCE 

19.  Central  Sales  Tax  Appellate  Authority.—(1)  The  Central  Government  constitute,  by 
notification in the Official Gazette, an Authority to settle inter-State disputes falling under 3[section 6A 
read with section 9] of this Act, to be known as “the Central Sales Tax Appellate Authority (hereinafter 
referred to as the Authority”). 

1. Ins. by Act 14 of 2010, s. 79 (w.e.f. 1-6-2010). 
2. Ins. by Act 41 of 2001, s. 3 (w.e.f. 17-3-2005) 
3. Subs. by Act 23 of 2004, s. 119, for “section 6A or section 9” (w.e.f.  10-9-2004). 

21 

 
                                                           
 
(2)  The  Authority  shall  consist  of  the  following  Members  appointed  by  the  Central  Government, 

namely:— 

(a) a Chairman, who is a retired Judge of the Supreme Court, or a retired Chief Justice of a High 

Court; 

(b) an officer of the Indian Legal Service who is, or is qualified to be, an Additional Secretary to 

the Government of India; and 

(c) an officer of a State Government not below the rank of Secretary or an officer of the Central 

Government not below the rank of Additional Secretary, who is an expert in sales tax matters. 

1[(2A)Notwithstanding  anything  contained in  sub-section  (2), the  Chairman  or  a Member  holding  a 
post as such in the Authority for Advance Rulings appointed under clause (a) or clause (c), as the case 
may be, of sub-section (2) of section 245-O of the Income-tax Act,1961 (43 of 1961) may, in addition to 
his being the Chairman or a Member of that Authority, be appointed as the Chairman or a Member, as the 
case may be, of the Authority under this Act.] 

(3) The salaries and allowances payable to, and the terms and conditions of service of, the Chairman 

and Members shall be such as may be prescribed. 

(4)  The  Central  Government  shall  provide  the  Authority  with  such  officers  and  staff  as  may  be 

necessary for the efficient exercise of the powers of the Authority under this Act. 

2[19A. Vacancies, etc., not to invalidate proceedings.—No proceeding before the Authority shall be 
questioned  or  shall  be  invalid  on  the  ground  merely  of  the  existence  of  any  vacancy  or  defect  in  the 
constitution of the Authority.] 

3[20.  Appeals.—4[(1)  An  appeal  shall  lie  to  the  Authority  against  any  order  passed  by  the  highest 
appellate authority of a State under this Act determining issues relating to stock transfers or consignments 
of goods, in so far as they involve a dispute of inter-State nature.] 

(2)  Notwithstanding  anything  contained  in  the  general  sales  tax  law  of  a  State,  the  Authority  shall 

adjudicate an appeal filed under sub-section (1). 

(3) An appeal under sub-section (1) may be filed within ninety days from the date on which the order 

referred to in that sub-section is served on any aggrieved person: 

Provided  that  the  Authority  may  entertain  any  appeal  after  the  expiry  of  the  said  period  of  ninety 
days, but not later than one hundred and fifty days from the date of such service, if it is satisfied that the 
appellant was prevented by sufficient cause from filing the appeal in time: 

Provided further that the Authority may entertain any appeal from an aggrieved person within sixty 
days from the commencement of the Central Sales Tax (Amendment) Act, 2005 (3 of 2006), where such 
aggrieved person had the right to file an appeal against the order of the highest appellate authority of the 
State under sub-section (1) as it stood immediately before the commencement of the said Act, but has not 
availed  of  the  right  to  file  the  appeal  during  the  period  commencing  on  and  from  the  3rd  day  of 
December, 2001 and ending with the 16th day of March, 2005. 

1. Ins. by Act 3 of 2006, s. 2 (w.e.f. 1-3-2006). 
2. Ins. by s. 3, ibid. (w.e.f. 1-3-2006). 
3. Subs. by s. 4, ibid., for section 20 (w.e.f. 1-3-2016).  
4. Subs. by Act 14 of 2010, s. 80, for sub-section (1) (w.e.f. 8-5-2010). 

22 

 
                                                           
(4)  The  application  shall  be  made  in  quadruplicate  and  be  accompanied  by  a  fee  of  five  thousand 

rupees.] 

21. Procedure on receipt of application.—(1) On receipt of an appeal, the Authority shall cause a 
copy  thereof  to  be  forwarded  to  the  1[assessing  appellate  authority]  concerned  as  well  as  to  each  State 
Government concerned with the appeal and to call upon them to furnish the relevant records: 

Provided that such records shall, as soon as possible, be returned to the  2[highest authority] or such 

State Government concerned, as the case may be]. 

(2) The Authority shall adjudicate and decide upon the appeal filed against an order of the  2[highest 

authority]. 

(3)  The  Authority,  after  examining  the  appeal  and  the  records  called  for,  by  order,  either  allow  or 

reject the appeal: 

3[Provided that no appeal shall be rejected unless an opportunity has been given to the appellant of 
being heard in person or through a duly authorised representative, and  4[also to each State Government] 
concerned with the appeal of being heard.] 

Provided  further  that  whether  an  appeal  is  rejected  or  accepted,  reasons  for  such  rejection  or 

acceptance shall be given in the order. 

(4) The Authority shall make an endeavour to pronounce its order in writing within six months of the 

receipt of the appeal. 

(5)  A  copy  of  every  order  made  under  sub-section  (3)  shall  be  sent  to  the  5[appellant,  assessing 

authority, respondent and highest appellate authority of the State Government concerned]. 

22.  Poweres  of  the  Authority.—(1)  The  Authority  shall  have  the  same  powers  as  are  vested  in  a 
court under the Code of Civil Procedure, 1908 (5 of 1908), while trying a suit in respect of the following 
matters, namely:— 

(a) enforcing the attendance of any person, examining him on oath or affirmation; 

(b) compelling the production of accounts and documents; 

(c) issuing commission for the examination of witnesses; 

(d) the reception of evidence on affidavits; 

(e) any other matter which may be prescribed. 

6[(1A) The Authority may grant stay of the operation of the order of the highest appellate authority 
against which the appeal is filed before it or order the 7[deposit] of the tax before entertaining the appeal 
and while granting such stay or making such order for the 7[deposit] of the tax, the Authority shall have 
regard,  if  the  assessee  has  made 7[deposit]  of  the  tax  under  the  general  sales  tax  law  of  the  State 
concerned, to such 7[deposit] or pass such appropriate order as it may deem fit.] 

1. Subs. by Act 32 of 2003, s. 164, for certain words (w.e.f. 14-5-2003). 
2. Subs. by Act 3 of 2006, s. 5, for “assessing authority” (w.e.f. 1-3-2006). 
3. The proviso subs. by Act 32 of 2003, s.164 (w.e.f. 14-5-2003). 
4. Subs. by Act 23 of 2004, s. 119, for “also to the State Government” (w.e.f. 10-9-2004). 
5. Subs. by Act 3 of 2006, s. 5, for “appellant and to the assessing authority” (w.e.f. 1-3-2006). 
6. Subs. by s. 6, ibid., for sub-section (1A) (w.e.f. 1-3-2006). 
7. Subs. by Act 14 of 2010, s. 81, for “pre-deposit” (w.e.f. 8-5-2010). 

23 

 
                                                           
1[(1B) The Authority may issue direction for refund of tax collected by a State which has been held 
by the Authority to be not due to that State, or alternatively, direct that State to transfer the refundable 
amount to the State to which central sales tax is due on the same transaction: 

Provided  that  the  amount  of  tax  directed  to  be  refunded  by  a  State  shall  not  exceed  the  amount  of 

central sales tax payable by the appellant on the same transaction.] 

(2)  Every  proceeding  before  the  Authority  shall  be  deemed  to  be  a  judicial  proceeding  within  the 
meaning of section 193 and 228 of the Indian Penal Code and the Authority shall be deemed to be a civil 
court for the purposes of section 195 and Chapter XXVI of the Code of Criminal Procedure, 1973 (2 of 
1974). 

23.  Procedure  of  Authority.—The  Authority  shall,  subject  to  the  provisions  of  this  Chapter,  have 
power to regulate its own procedure 2[in all matters, including stay of recovery of any demand] arising out 
of the exercise of powers under this Act. 

24.  Authority  for  Advance  Ruilings  to  function  as  Authority  under  this  Act.—(1) 
Notwithstanding anything contained in any other law for the time being in force and in section 19 of this 
Act, the Authority for Advance Rulings constituted under section 245-O of the Income-tax Act, 1961 (43 
of 1961) shall be notified by the Central Government in the Official Gazette, with such modifications as 
many be necessary, to make its composition in conformity with section 19 of this Act, as the Authority 
under this Act till such time an Authority is constituted under that section. 

(2)  On  and  from  the  date  of  the  constitution  of  the  Authority  in  accordance  with  the  provisions  of 
section  19  of  this  Act,  the  proceedings  pending  with  the  Authority  for  Advance  Rulings  shall  stand 
transferred to the Authority constituted under that section from the stage at which such proceedings stood 
before the date of constitution of the said Authority. 

3[25. Transfer of pending proceedings.—(1) On and from the commencement of the Central Sales 
Tax  (Amendment)  Act,  2005  (3  of  2006),  all  appeals  (except  appeals  against  orders  of  the  highest 
appellate authority of the State) pending before the Authority notified under sub-section (1) of section 24 
shall stand transferred together with the records thereof to the highest appellate authority of the concerned 
State. 

4* 

* 

* 

* 

* 

26.  Applicability  of  order  passed.—An order passed  by  the  Authority  under this  Chapter  shall  be 
binding on 5[each State Government concerned, the assessing authorities] and other authorities created by 
or under any law relating to general sales tax, in force for the time being in any State 6***.] 

_________ 

1. Ins. by Act 14 of 2010, s. 81 (w.e.f. 8-5-2010). 
2. Subs. by Act 32 of 2003, s. 165, for “in all matters” (w.e.f. 14-5-2003). 
3. Subs. by Act 3 of 2006, s. 7, for section 25 (w.e.f. 1-3-2006). 
4. Sub-section (2) omitted by Act 14 of 2010, s. 82 (w.e.f. 8-5-2010). 
5. Subs. by Act 23 of 2004, s. 119, for “the assessing authorities” (w.e.f. 10-9-2004). 
6. The words “or Union territory” omitted by Act 3 of 2006, s. 8 (w.e.f. 1-3-2006). 

24 

 
 
 
 
 
 
 
 
 
                                                           
