What are Declared Goods?
These are goods of special importance
as declared under section 14 of Central Sales Tax Act, 1956
Examples of declared goods
- Coal, including coke in all its forms, but excluding charcoal
- Cotton, (indigenous or imported) in its unmanufactured state, whether ginned or unginned, baled, pressed or otherwise, but not including cotton waste
- Cotton fabrics
- Cotton yarn, but not including cotton yarn waste
- Crude oil
- Hides and skins, whether in a raw or dressed state
- Iron and steel
- Oil seeds
- Man-made Fabrics.
- Liquefied petroleum gas for domestic use
Restrictions, imposed on the tax on the declared goods
Special privileges or concessions are provided for declared goods under Section 15 and 16 of Central Sales Tax Act, 1956
Local VAT rate/ Sales tax within state cannot exceed 5%
If purchased within state and then sold outside state, than vat on purchase is reimbursed (available for refund) if
- Tax on interstate sale(CST) is actually paid
(Hence, CST must be actually paid to claim refund, Input VAT of declared goods is not available)i
- Goods must be sold in same form in which they were purchased (Hence if cereals were purchased within state and biscuit made of them and sold outside state, then reimbursement not available)
Mr. Y of Mumbai purchased declared goods (goods of special importance) from Nagpur by
paying sales tax at @ 5%. Subsequently, the commodity is sold to a dealer at Chennai. The
dealer Y while collecting and remitting tax on the inter-State sale, wants refund of tax paid on
sale within State (i.e. purchase from Nagpur). Is he correct?
If a tax has been levied on sale or purchase of any declared goods inside a State and the
same goods are subsequently sold in the course of inter -state trade or commerce and is
subjected to tax under the CST Act, sales tax paid has to be reimbursed to the dealer.
However, sales tax paid within the state can be reimbursed only when the CST has been paid
subsequently and not otherwise.
Hence, in this case, Mr. Y can claim refund of tax paid within the State after payment of
central sales tax in respect of such declared goods.