ISSN (Print) - 0012-9976 | ISSN (Online) - 2349-8846
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Shifting Fiscal Frontiers of the Central Sales Tax-An Approach towards Equity

The Forty-Sixth Constitutional Amendment Act has authorised the central government to levy tax on consignment transfers. This would mean that whereas hitherto the CST was levied on about approximately 10 per cent of the transactions, it would now cover all interstate transactions. It is, therefore, necessary that in the interest of the greater degree of autonomy for the states, and for a unified common federal market in the country, the fiscal frontiers of the CST should be shifted from exporting borders to the consuming outlets. This would imply that the basis of the CST would be shifted from origin to destination. What is the rationale of such a shift?

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