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CA Vinod Kaushik

CA Vinod Kaushik

Now DS-1 (Delhi Sugam-1) is mandatory in case of outward movement of goods from Delhi to all places outside Delhi


After a series of changes under Delhi Vat in past few days like insertion of item codes and items names in vat return, signing of return by digital signatures and many more now the Govt. has prescribed an online form (DS-1) for outward movement of goods from Delhi to all places outside Delhi before the actual movement of goods occur. Earlier the Delhi Govt. prescribed form T-1 for outward movement of goods but that form was applicable for few commodities like petroleum products, tobacco and gutka. Delhi is a trading hub and manufacturing is negligible in this state which means almost all the goods are imported from outside Delhi and sold in local market to buyers of other states.

The Govt. has collected extensive data for import of goods into Delhi through form ds-2 which was prescribed for import of goods into Delhi from 15thSeptember 2015. There is no exemption for filing of form DS-2 which means for a single consignment form Ds-2 need to be filed. As of now there is no exemption granted in the notification dated 19-05-2016 for any kind of commodity or goods for filing form DS-1. Now I will discuss each and every aspect of this form in detail manner with suitable illustrations if necessary.

Who is required to file form DS-1:-

As per the notification dated 19-05-2016 all registered dealer (Same as for DS-2) are required to file form DS-1 for all the commodities/goods (No exemption for any exempted commodity, no exemption of any value say 20000/-or so) before the actual movement of goods occur from Delhi to all places outside the territory of Delhi.The notification has not granted any exemption for any value, any commodity or any class of dealer like E-Commerce dealers, Dealers of petroleum products etc. The notification is applicable with effect from 01-06-2016 and till date of writing of this article no exemption/extension is announced by VAT department. In my personal opinion there might be extension of its applicability but Govt. will ultimately implement this change like form DS-2 which was opposed by certain trade association in the beginning of its applicability.

Comparison between form T-1 and form DS-1:-

Form T-1 was prescribed vide notification dated 23-03-2012 and it was applicable for few selected commodities like petroleum products(except Kerosene Oil Petrol, Diesel, Aviation Turbine Fuel, Liquid Petroleum Gas or Compressed Natural Gas) tobacco and gutka but form DS-1 is applicable for all commodities irrespective of its taxability. The T-1 form was mandatory for sale, stock transfer or local movement, for whatsoever reasons whereas form DS-1 is not applicable in case of local movement of goods.

Salient features of form DS-1:-
First of all this form is required to be filed online from login ID of registered dealers with effect from 01-06-2016 before the actual movement of goods occur. Now I will explain each and every field of this form in details with suitable examples wherever necessary.

Form Delhi Sugam-1 (DS-1)

S. No. Particulars Comments

In this first field type of movement is to be reported like against forms (C, F, H, I, J), exports or for any other reason whatsoever.


The option “Others” under dropdown menu is given for transactions not covered specifically like job-work, testing, free samples and repairs or for any other possible reasons.
2. In 2nd column details of sale need to be mentioned this will contain sellers TIN, Invoice No. and its date. In my opinion this field will be mandatory as all registered will have TIN under Delhi VAT and CST and also goods will be moving either against invoices or delivery note (DVAT-33). The details of invoice and delivery note can be entered under this column.
3. Third column will ask for the information about receiver which can be a registered as well as unregistered dealer (consumer). The TIN, name and state of recipient need to be mentioned. This first information of TIN under this field as mentioned will be optional because consumers in other states or importers do not have invoices with them.
4. Commodity or item details which will contain name of item, rate of vat of product under Delhi VAT (%), value of commodity and CST amount. First three fields can be easily entered by all the dealers but CST amount can be entered in case of sales only. In case of stock transfer, exports CST amount cannot be there. The commodity details shall be inserted as per recent notification dated 12-04-2016
5. Mode of transport by almost all the means is covered in the dropdown. This field covers almost all the modes of transport. Which contains by road, by train, by air, by courier, by own vehicle, by internet and last through pipeline.
6. The last field captures the transporter’s details. In my opinion the information related to transporter name, GR/RR/AWB/courier-receipt is not applicable in case goods moved through own vehicle, internet or through pipeline.

Doing business is not so easy for dealers under Delhi Vat as the Govt. has recently introduced items name and item code under Delhi Vat and now they have issued form DS-1 for interstate transactions including export of goods. The traders are not happy with the decision of Govt. and accusing that VAT department is busy in collecting funds for ruling Govt. by hampering the trade. Really submission of information of each inter-state invoice especially in case of vendors of e-commerce companies seems quite difficult as they have some time 1000-1500 invoices per day. The trade associations must make pressure on ruling Govt. so that business can be done in the city without hassles and inspector raj. If you have any suggestion after reading this article you can send an email to me @

Disclaimer: Views expressed are strictly personal. The content of this document are solely for informational purpose. It doesn’t constitute professional advice or recommendation. The Author does not accept any liabilities for any loss or damage of any kind arising out of information in this article and for any actions taken in reliance thereon.

Author Bio

I am a practicing Chartered Accountant specially in area of Indirect Taxation (GST). I have deep interest in understanding the subject and a quick learner. I have been handling litigation, opinion and departmental issues of indirect taxation. I am also pursuing Law from a prestigious institution o View Full Profile

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June 2024