TALE OF CENTRAL SALES TAX (CST) - TAX LANDSCAPE

Central Sales Tax (CST) was introduced in India in 1956 as a tax on inter-state sales of goods.

Initially, CST was levied at a rate of 1%, which was later increased to 2% in 1975.

In 2005, the government of India announced its intention to phase out CST, and it was reduced to 2% from 4% in 2006.

The phasing out of CST was supposed to be completed by 2010, but it has been extended multiple times.

Currently, CST is levied at a rate of 2% on inter-state sales of goods, but it is expected to be abolished soon.

The introduction of Goods and Services Tax (GST) in 2017 has made CST redundant, as GST is a comprehensive tax that covers all types of sales.

The phasing out of CST will simplify the tax system in India and make it more efficient.