Act not to apply

Nothing contained in the Act shall be deemed to impose or authorize the imposition of a tax on the sale or purchase of any goods, where such sale or purchase takes place:

territory of India; or

c) in the course of inter-State trade or commerce.

Explanation: - The provisions of Chapter II of the Central Sales Tax Act, 1956,

shall apply for the purpose of determining when a sale or purchase takes place

in the course of inter-State trade or commerce or outside a State or in the course of import or export.