Section 6 of Central Sales Tax Act 1956 defines sales tax liability on Inter State Sales. Provisions in the act related to Inter state sale of goods and tax liability is as follows
Liability to tax on inter-State sales
Section 6 (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 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:
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.
(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.
(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 by
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,-
(a) to the Government, or
(b) to a registered dealer other than the Government, 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?
(i) to a registered dealer, a declaration referred to in clause
(a) of sub-section (4) of section 8, or
(ii) to the Government, not being a registered dealer, a
certificate referred to in clause (b) of sub-section (4) of
Section 8:
PROVIDED FURTHER that it shall not be necessary y to furnish the declaration or the certificate 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 four per
cent (whether called a tax or fee or by any other name); and
(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 clause
(a) or clause (b) of this sub-section.
(3) Notwithstanding anything contained in this Act, 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 any official, personnel, consular or
diplomatic agent 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 or agreement to
which India is a party or under any law for the time being in
force, if such official, personnel, consular or diplomatic
agent, as the case may be, has purchased such goods for himself
or for the purposes of such mission, consulate, United Nations
or other body.
(4) The provisions of sub-section (3) shall not apply to the
sale of goods made in the course of inter-State trade or
commerce unless the dealer selling such goods furnishes to the
prescribed authority a certificate in the prescribed manner on
the prescribed form duly filled and signed by the official,
personnel, consular or diplomatic agent, as the case may be.