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,


It includes the following

  • Transfer of property in goods in works contract
  • delivery of goods on hire-purchase/installments
  • transfer of the right to use any goods for any purpose
  • Supply of goods by AOP/ BOI to member
  • Supply of food and drinks


Hence, CST imposed on all the above items


However it does not include

Mortgage, hypothecation /pledge of goods

Exam Questions

Question 11
Briefly examine the validity of the following statements with reference to the Central Sales Tax
Act, 1956:-
(i) Sale includes a mortgage or hypothecation of or a charge or pledge on goods.

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CA Maninder Singh

CA Maninder Singh is a Chartered Accountant for the past 14 years. He also provides Accounts Tax GST Training in Delhi, Kerala and online.