Sales Tax Exemptions
Certain goods or services are not subject to sales tax, either partially or entirely under the CST Act. Goods Exempted under sales tax are:
1. Essential Goods: Goods of necessities such as food, medicine, and clothing are exempted under sales tax to keep them under the affordable range.
2. Charitable Motive: Purchases made for charitable, educational, or religious activities are subject to exemptions.
3. Government Purchases: Purchases made by Central, state, or local government entities for official use may be exempted from sales tax.
4. Resale Exemption: Goods purchased by any business entity with an intention of re-selling shall be eligible for tax exemption under sales taxes to prevent double taxation.
5. Agricultural Inputs: Items like seeds, fertilizers, and equipment used in farming activities may be exempt from sales tax to support agricultural activities.
6. Healthcare Services: Some states may exempt healthcare services and medical supplies from sales tax to make them affordable for all classes.
7. Export Sales: Exemptions may apply to goods or services sold for export to promote international business.
8. Educational items: Educational materials, textbooks, and training services are exempted to support learning and development programs.