Goods Movement Form under CST Act 1956; C, F, E1- E2 Form at a glance

1. INTRODUCTION

There are certain type of forms which has been prescribed under central sales tax rules 1957, form c for making interstate purchase at lower rate, form E1 and E2 used when interstate sale or purchase which are effected by mere transfer of document of title (subsequent sale), form F used to transfer goods from one branch to other in different state without making it as sale.

2. ANALYSIS

A) C FORM

It is printed paper form which is issued by VAT department to the registered dealer who makes interstate purchases of those goods which are mentioned in his RC (registration certificate). While doing transaction purchasing dealer furnish this form to selling dealer in course of interstate purchase to get exemption/reduction in sales tax rate. It is defined under section 8(1) of CST act 1956.

cst

From above chart it is clear that firstly purchasing dealer will furnish form C to the selling dealer in Punjab to claim tax exemption or reduced rates of taxes (2%) thereafter selling dealer will submit these form to the department of VAT in Punjab .

One C form can be used for no of transactions for one quarter of financial year.

B) E1 AND E2 FORM

As per section 6(2) of CST act first interstate sale will be taxable, subsequent sale during movement of good by way of transfer of document is exempt from tax. For making subsequent sale exempt Form E1 & E2 are used.

 cst1

From above illustration it is clear that how goods/document of title move from one place to another. Actual delivery was received by C in Jaipur however between A, B there was only transfer of title. Only the first sale will be taxable, other subsequent sale will be exempt if dealers are registered.

In above example A of Mumbai will receive C form from B of Delhi & will issue declaration in E-I form to B of Delhi .Later on B of Delhi will issue declaration in Form E-II to C of Jaipur against which C will furnish C form to B (Delhi).

If above chain is broken then the exempt sale will get reversed and CST will be applied on these transaction.

C) F FORM

With this, goods can be transferred/delivered from one state to another without recognising it as a sale. For instance the head branch may transfer goods/stock from one state to another to its branch or agent without becoming liable for CST. It is issued by the VAT department on the request of the purchasing dealer (branch or head branch) .Forth; the purchasing dealer submits F form to the selling dealer to claim exemption from making it as CST sale. As per section 6(A) of CST act F from is mandatory to prove transaction as stock transfer.

Is F form required in case goods are returned? The answer is yes, decided by the hon’ble Supreme court in case of AMBIKA STEELS that the liability of furnishing F form would be still there even if stock or goods are required to be sent back.

Single F form may cover consignments of goods transferred during one calendar month.

It is advisable that Registration certificate {RC} should contain the name and address of branches to which stock is transferred against F FORM {branch transfer} to claim concessional/nil rate of tax. One F form has to be issued for each month.

Conclusion – Many peoples get confused regarding C, E1 & E2 form. So these forms are discussed above at glance to remove ambiguity. Proper knowledge of these forms may result in smart movement of goods between states.

Article by –

Anubhav Jain (CA Final),

Kota (Rajasthan),

Email- anubhav5jain@gmail.com

Click here to Read Other Articles of Anubhav Jain 

More Under Goods and Services Tax

137 Comments

  1. Kamal says:

    Ashok of Delhi has to dispatch goods to Chandan Lucknow (Uttar Pradesh) but Invoice done on Bhanu in Lucknow (Uttar Pradesh). then who will issued Form “C”

  2. haji vali says:

    dear sir,

    how to make / generate E1 and E2 Forms from Andhra pradesh and Telangan states..
    please give me sajaction to generate E1/E2 Forms

  3. Shahid says:

    Sir i am a mp dealer and i am buying from maharashtra traders, but maharashtra dealer make invoice to name of MP local dealer & consignee to me so in case MP local dealer charge 2% tax on invoice & he want c-form for this transaction. so please explain we are liable or not for c-form..

  4. Pinki says:

    I am a registered dealer under Maharashtra Value added tax act and have sold goods in Silvassa.
    Please tell me whether MVAT is applicable on this sale

  5. sudheer says:

    i am at hyderabad. we procured capital goods from silvassa and delvery at mumbai. is it any sales tax applicable or which form are applicable ?

  6. Naveen mittal says:

    Dear sir
    I am registered dealer in Rajasthan, given purchase order to to party which registered in Maharashtra. But that party has further order to party in silvasa near Gujrat and Maharashtra border to do delivery to me in Rajasthan. I have issue form vat 47 to party of Maharashtra. Now problem is tha, I my material smoothly crossed Gujrat border or not. There are both the bills attached with road permit.

  7. jagdish says:

    i am in gujarat. and we have purchase food medicine and party charge Vat 12.5% and Add Vat 2.5% ok. and product sale of Out of Gujrat than With “C” form 2.00%CST Charge and With out “C” form CST Charge 5.00% or more. please reply

  8. hitesh gami says:

    i am india base selling of Toys and stationery item. i have TIN number but out state buyer who has requirement of “C” form how can i given him…….

  9. nidhi says:

    we have do stoch transfer from our import unit in g.t karnal road to our gurgaoun branch and then gurgaon branch to our baddi branch in F form, it is right to do stock transfer two times

  10. vibhakar says:

    I am in Gujarat ,If I purchase goods from MUMBAI with Maharashtra Local VATpaid & do delivery in Mumbai & make a bill of Customer of GUjarat whose customer is in mumbai .This is legal ,is any tax liability remains with purchaser (Mean to my company)…

  11. Kalpesh says:

    Good Article

    you have clearly define the forms but i have a case, as if only the title of goods move from one state to another(i.e. tax invoice is prepare in the name of dealer of another state) but the physical movement of goods not taken place outside the state. (i.e. material use in the same state at site work ) Is this transaction is liable for issue of C form for the purchasing dealer? or it is treated as local sale for selling dealer?

  12. Santhakumar says:

    Dear Anubhav

    We are at pudhucherry. We are purchasing goods from tamilnadu by CST 2%. but the goods will deliver to our job workers (Tax Exempted) at tamilnadu. which documents should we give to the transporters.

  13. Payal says:

    If a dealer(A) from maharashtra purchases goods from delhi(B) and sells to another dealer (C) in maharshatra and that party(C) again sells it in madhya pradesh(D)- to state government. Delivery is made directly from (B) to (D).
    What will be the implications on all the parties.
    Also if (D) id not state government but a normal dealer, then what will be the implication??

  14. Amol Mandale says:

    Sir,
    We “A”, manufactured of Plastics components in Maharashtra & same part sales to “B” which is our customer and same he is in Maharashtra. Now “C” is dealer of “B” which located at Delhi NCR.

    Now “B” says to “A”, bill to “B” and ship to “C”, now in that case what the tax structure use?

    Awaiting your favourable reply.

    1. Anand Nandurkar says:

      Hi We hd purchased R/M from our Local- mumbai/( MS) dear but Our suppler has purchased R/M from Gujrat & directly delivery in my place , my local suppler has mentioned in Invoice against C Form , sir , my Question is ,Whose claim with C Form Gujrat or Local suppler. Which value wil have mentioned in C Form , pl advice

  15. Amol Mandale says:

    Dear Sir,

    I am manufactured in Maharashtra. we want to bill to in Maharashatra which is my customer but ship to out of Maharashtra. what the tax structure use in this trasaction.

    1. sujal says:

      I am Gujarat state traders.
      Manufacture unit maharastra state & First Dealer Maharastra
      Second Dealer gujarat state
      third User guajrat state.
      E1 & E2 Form Transaction possible.

  16. FactorySendhamarai says:

    Dear Anubhav,

    I am “A”. My contractor is “B” and service Area of
    company/place “C”.
    For example, A is tamilnadu and B is a same state.
    But C is Andhra pradesh. A & B office only in Tamilnadu. A service to B in some material in AP. But no tin no in AP state for B. How to move the material in Tamilnadu to AP.

    Please explain and give one for one suitable example.

  17. Form I says:

    Sir,

    I am from Maharashtra and purchase material from Bangalore and sale to consignee in Maharashtra (Under SEZ) against form Ipl suggest this transaction wrong or correct.

    pl specify the transation sales against form I

    regards-Mahant

  18. SRINIVAS says:

    Sir

    Our co.in Hyderabad Telangana we doing job work for Maharastra co. they are sending the RM thourgh 57 F(4)challan. Now they are asking Advanced way bill, so we can issue or not please suggest me sir
    Thanking you

  19. V. K. Singh says:

    Dear pls inform we appointed one C&F of pharma at Kanpur who received goods from Gujarat but now goods had to be returned either back to Gujarat or to transefer to any other newly appointed C&F in U. P. itself so pls inform what papers or forms to be arranged by existing party or company or new party for stocks transefer or goods returned awaiting early reply

  20. PRIT says:

    Hello
    i just want to know what tax will be applicable in following situation:

    we are in chemical distributors sale all over india.
    as my customer is out of maharashtra but he collect his material from maharashtra by his own transporter there is lil confusion over here what type of tax will be applicable on it cst or vat?
    we prepared invoice on it his customer address is out of maharashtra.
    is we have to pass cst or vat?
    kindly revert please

  21. Sagar Bansal says:

    Dear Anubhav,

    I am registered in UP Commercial Tax.
    Our Company Dispatch material to S.S. (Super Stockist) with 5% vat. Then S.S. also dispatch the material to Market Distributor with 5% vat.
    Our company paid for S.S. and Distributor’s Vat and Transport Charges Extra. Company Paid 15% excess amount other than material amount.
    is any condition to save S.S. to Distributor 5% vat.

  22. srinivivasa says:

    i am a trader in bangalore, iam buying from andra pradesh and iam selling in karnataka sales in transit only and i sure this traction doing e1 and we aske c form form our state party

  23. srinivivasa says:

    i am a trader in bangalore i am buying form andra pradesh and my buyer in goa but iam devilry to karnataka which one we are get c form and issue e2 forms goa party or karnataka party

  24. C D CHAVAN says:

    Thanks for information but we are facing lots of problem in Silvassa DNH while obtain the Form E-1 after submitting Form C of purchasing party to sales tax Department

    We are from Oil company and having manufacturing plant at Silvassa DNH .

    We are selling our Excise paid product through E-1 transaction against advance payment and materials dispatch to end users through transport

    1) On Interstate Sales Invoice issued to Traders and ship to address to end users

    2) Lorry receipts on the Name of End Users

    3) Traders issue Form C to Manufacturer

    Please inform the procedure and requirement for application of Form E-1

  25. vigneshwari says:

    Dear Sir,

    It is known that ED & CST is applicable for packing & forwarding charges.
    Could you please provide me documentary evidence for that?

    Thanks & Regards

  26. Raman Desawar says:

    Dear Sir,

    Situation 1. We are Vat Dealer in Punjab and we purchase goods from HP and sold to Haryana and want to claim exemption from CST under section 6(2)(i.e. Form C, E-I & E-II involvement). In this case, What should be the nature of transaction in Form 18 & 19.

    Situation 2. Further in case of normal situation of single transaction our nature of transaction in Form 18 is against C Form that means we receive C Form from our buyer and produce the same to the Vat Deptt. and in Form 19 our nature of transaction is against C Form that means deptt. will issue C Form to us to produce the same to the seller.

    In Situation 2 Single is the Nature of transaction as we mentioned in form 19 and single is the form that deptt will issue to us i.e. C Form. but in Situation 1 nature of transaction cannot be the double but we have to receive double Form from the Deptt. to issue to both the parties and also receive double forms from parties to produce to the Deptt.

    Regards-Raman Desawar

  27. Anuj Gupta says:

    Dear Anubhav,

    i am trader and registered in Agra(U.P), I want to purchase goods from Allahabad(U.P) dealer and sale directly from Allahabad to Bhopal(M.P)

    Now the problem is that the Allahabad Dealer who send material to Bhopal on behalf of me generate bill against Bhopal party with 5% tax.

    now i want that my bill should given to bhopal party and Allahabad dealer should raise bill for me so please tell me what should i do

  28. Abhay says:

    Dear sir,

    My company as a provide job works,then we can purchase goods(Chemicals & Colors) against the C Form.

    Thanks & Best regards
    Abhay

  29. Sharad Marathe says:

    Dear Sir,

    I am sale ratlam (MP) but party direct sale to Tarapur(Maharashtra) but party demand e-1 form…. please help i am issue e-1 form or not?

    Waiting for your reply.

    Thanks & Regards,

    Sharad Marathe

  30. srikanth says:

    I’m dealer in Andhra pradesh,my customerin Andhra pradesh is asking to Bill him in 2%.he is saying that he can issue cst waybill. I receive goods from Maharashtra.is it possible to Bill under E1-E2 transaction? Plz let me know.

  31. Sushanta karmakar says:

    I send way bill party 1 to the consignor at maharastra but the consignor send materials other party by using my way bill part 2, what should i do?

  32. Sushanta karmakar says:

    I send way bill part 1 to the sender at maharashtra but the sender send material to other party by using my way bill part 2, then what should i do?

  33. KAMAL says:

    Dear Sir,

    We are based at Gujarat, Our supplier is based in Gujarat.

    We want to send material to our job worker in Silvassa( UT). we want a arrangement Billing of goods to us, shipping address of job worker.

    My questions:
    1. Will it be a VAT sale or CST sale?
    2. If VAT sale , can we claim the VAT?
    3. If CST sale can we issue C form
    4. Please give your input with notification and circular or similar case example.

    Thanks in advance

    regards
    Kamal Bajaj

  34. dev says:

    MY company in rajasthan MY party in Punjab but not registration so he want full tax material Can we sale out or not any problem then give mail

  35. JOYDEB SARKAR says:

    Sir,
    I am a Manufacturer in Kolkata. I have received an Order from Kolkata (“A”)on March,2011 and advised by the (“A”) to Delivers the Goods to(“B”) Maharashtra and billed to (“A”) Maharashtra Branch. Maharashtra (“A”)issued me ‘C’ form on March,2013.Now they claim “E-1” form from us. Is it mandatory for me to Issue “E-1” form to (“A”), Maharashtra? If yes, What problem will occurred If I not issued “E-1” form? Please reply.

    With Regards,
    Joydeb

  36. krishnakumar says:

    Dear Sir

    We are dealing with food products in Alappuzha,Kerala and recently we started branch at Chennai, what is the procedure for sending goods to channai Branch if there is any Invoice format for sedning goods against form ‘F’

  37. Anand says:

    Dear Sir
    I am a trader in Bhopal(A). I am buying from Maharashtra(B).But the goods are require to be delivered to one of my customer in Nasik(C) but goods are ultimately dilivered in Bhopal another customer(D).And my vendor is charging me 2% against c form and i am also pass on 2% to my customer and credit invoice issue for the margin without charging 2% cst.Please help for the C form how much amount is involve

  38. rajesh says:

    Dear Anubhav,
    If a dealer wants to sell goods to its customer in same state by purchasing material from manufacturer of another state. Can E-1 transaction be made??
    Since the purchase price from manufacturer is not to be shared.

    Regds
    Rajesh

  39. Chithambar. R says:

    Dear Sir,

    Our organisation is having registered office at Chennai, Tamilnadu. The company has also taken branch registration in Coimbatore, Tamilnadu. We want to sell the materials directly to Assam Customer against Cform. Currently we are transferring the materials to Chennai and making inter state invoice to other states. Whether it is possible to do Billing from Coimbatore (SAEPL BRANCH) directly to customer of Assam on CST Billing. Whether E1 sales can be done ie Invoicing materials from SAEPL Chennai from Coimbatore and sending materials to Assam Customer on CST. At such case the customer has to issue Cform in whose name. SAEPL Chennai or SAEPL Coimbatore. Please reply.

  40. Viji says:

    I am a registered dealer in Kerala. I am purchasing goods from our OEM at Bangalore . We are paying excise duty @ 12.5% and CST @2% . The material will dispatched from Bangalore through transporter and at the CT check post we are paying Kerala Vat @ 5% as advance tax in all regular cases and after reaching the material at our site we are billing the same to the end customer.

    If one of our customer in Kerala is having C form and want billing through C form how we can sell the material to that customer with C form. what are the procedures and tax patern

  41. sudarshan babele says:

    we are the importer located delhi we going to sell dry fruit delhi to chhanai then what can be the tax/ vat/ CST i have to charge from buyer or mention in our invoice & please also tell is there any from aplicable for buyer or seller, if appliacble then what is the procdure of it.

  42. ANIL VERMA says:

    sir,

    We are sale goods (iron & steel items) for the year 2014-15. under section 6(2) E1 & C transaction.
    If i provide c form to seller party and received E1 form from seller.
    But we have not received C Form from my party.
    So what tax liability in my favor?

    Please reply…

    Anil Verma

  43. Fasil says:

    Hi..guys

    I have a query about CST registration, I our company head office in Chennai and we have branches in others.we registered CST in chennai Saligramam CT. This CST is enough to all branches to purchase a goods. or whether we need to register in cst for all branches . kindly give clarification.

  44. ANKUR JAIN says:

    DEAR SIR,
    I AM A DEALER HERE IN M.P. I WANT TO SELL TILES TO MY CONSUMER IN MAHARASHTRA, BUT THE TILES WILL DIRECTLY GO FROM GUJRAT TO MAHARASHTRA, AND THE INVOICE IS NAMED FOR MY COMPANY, HOW MUCH TAX SHOULD I HAVE TO QUOTE WHEN I AM BILLING TO MY CONSUMER, I CAN DO THAT SELL OR NOT I ALSO HAVE MP TIN NO. AND CST NO.

  45. Ashutosh Kumar Jha says:

    In above example, there is a difference created in amount of Form C and amount of road permit as when goods are directly delivered to party C from party A then road permit is required to generate with invoice value to B by A and C form issued to B by party C is for amount billed by B to C. Is there any problem or violation of law due to such difference in road permit amount and Form C amount?

    Thanking you.

  46. Sanjeev says:

    Dear Sir

    Seller in Mumbai
    Buyer in Mumbai
    Consignee in gujarat.

    i.e the material is deliverd at Gujarat.

    Whether the dealing between Buyer and seller is CST or Local sale.

  47. Prashant says:

    Dear Anubhav,

    The example shared for explaining E2 transaction is not correct. In this case, E2 won’t come in picture at all. C will issue C form to B. No E2 will be issued to C. For C, it is normal purchase, no transit sale. Hence question of E2 is not applicable for C. Pl correct the transaction quoted.

  48. binay says:

    how and when should be E1& E2 form used.

    I am from West Bengal.

    I had made a purchase from Mumbai, to be supplied to on of my customer in West Bengal directly.

    My customer is asking me to charge 2% against form C and not 5% VAT, as it is considered to be an interstate purchase.

    Is that possible, if I am selling from West Bengal.

    If yes, how should everything be done, who should give what to whom. please clarify thank you

  49. Sara says:

    I am manufacturer in Pune. I am buying from another trader in Mumbai. But the goods are required to be delivered to one of my customer in Goa. And my vendor is charging me 2% against C Form. How will i issue C form to my vendor being in the same state and what forms must I collect from my vendor and what forms must I issue to my customer. Please advise.

  50. Amit Sharma says:

    Dear Sir
    My company is registered in gujarat and i have a agent in rajasthan for sales. i purchased goods and want to move the goods to my agent for sales. Invoice will be done after completion of work. So can i send the goods on deliver challan basis and plz advice the rule so my material can be cleared at border easily.

  51. navaid belim says:

    A= Exporter
    B = Importer
    C= Supplier

    B import goods from A Exporter( China) so B delivery to C so when goods arrived on port B then will B pay CST2% or not..

    plz call me 9829804511

  52. Sombir says:

    Dear sir, i Sell tiles in haryana and i purchased tiles from gujrat factory but neither i have cst no. Nor vat no. but factory always ready to give me tiles with bill.and factory always take Gst tax from me what is that gst tax?Then what will have to do take cst and vat no.pls tell me Hurry as soon as possible. / Sombir verma

  53. Agartala Plastics Pvt. Ltd. says:

    Hi,
    1. A in Puna.
    2. B in Kolkata.
    3. C in Tripura.
    B buy from A & sell to C.
    C give the C-form to B.
    B give E2 to C.
    The machine came from A & send to C againest E1 tansaction.
    In that case C have to issua a road permit.

    In the invoice of A, the buyer is B & the consignee is C.
    Both of them issued seperate invoice with saperate amount.

    To whom invoice, C will issue road permit, eigther B or A ‘s invoice?

    Please solve my problem. The goods are in the road.

  54. priyanka says:

    Need your help, can C Form billing happen between the two dealer in two different states ( both having VAT & CST registration).

    A – MANUFACTURING COMPANY
    B – PUNE STOCKIST – DEALER
    C – BANGALORE -DEALER

    In above case can C-Form billing can happen between the B&C

    though A is billing to B aganist Form C, cam B futher bill to C aganist Form C

  55. m.v.rao says:

    i am AC dealer in hyderabadng with VAT & CST registration. one of our customer having base in hyderabad wants AC S IN BANGALORE for their branch, customer is educational consultancy and not having c-form or VAT. THEN HOW TO bill and delivere the goods. can u please explain me the procedure.

  56. sanjay jadhav says:

    A) TRADER in Mumbai B)Manufacturer HO-Mumbai C)contract party / job work doing for B. B issue Purchase order & payment to A against material & material despatched directly to C to another state, afterward B issue “C” form to A. well this right transaction or what & if it right pls give the section number or Law.

  57. Aayush Armarkar says:

    Sir,
    I have made a transaction under 6(2) of The CST Act ,in year 2012-13 the party has returned goods in year 2013-14 to the party from whom it was orignaly purchased. Will this sale’s return affect the transaction under 6(2) ?
    If yes what forms I will be liable to produce ?

  58. Arvind Saini says:

    Dear Sir,
    We have dispatched part 1 from Uttarakhand to party A Gujarat, but We have Part 2 prepare in Gujarat party B (pole) the the material part 2 dispatched to party A ,so please guide me about this & E 1 form.
    Thanks & Regards
    Arvind Saini
    9759049750

  59. Ganesh Sane says:

    We are Railway contractors in Mumbai. The Tender is tow Part. Supply & Erection. Railway deducts 2% W.C.T. of entire bills. We have to purchase 90% material for outside Maharashtra. We issue them ‘C’ form and they give us Form E-1.The material supplied to Railway directly to site.We are filing VAT Return and as Works Contractor. What benefit we can get of E-1 form is the material is used in Mumbai only.

  60. ajith doss says:

    I buy gujaratt by cst 2%, but sale in localy chrnnai by 14.5%,, ie..
    (basic + ed+ cst) + transport + margin + vat14.5%
    100+13.36+2+5+2+20=141.46.but our compitetor will sale 120. So please tell me any adjust is available. … & how to calculate vat….
    9600034369

  61. Sunil Gupta says:

    Dear Sir,

    I want to know about the below:

    My company A registered in Central Excise in Delhi and my branch B in Chennai.

    A send the material to C (customer in Chennai) and billed to B (Branch). It means Bill to party is B (Branch) and Ship to party is C (Customer).

    Can we treat the above transaction as “Goods Transfer to Branch” against F -Form.

    Regards
    Sunil Gupta

  62. manisha says:

    Please advise how much % of CST / VAT will be levied to a Client in Mumbai
    under the following circumstances :-

    1] Purchase of Material from Delhi . We procure to our Mumbai Office and supply
    to the Client at their office in Mumbai .We raise Invoice on the Client in Mumbai.

    2] Purchasing Material from Delhi , however item is despatched by the supplier
    Directly to the Customers place in Mumbai. WE raise Invoice on the Client in
    Mumbai.

    3] We procure from Delhi , bring to our Mumbai office and supply outside Maharashtra.
    Invoice raised from our Mumbai office to Clients Mumbai Office.

    4] We procure from Delhi and supply directly to the Customer place outside Maharashtra.
    We raise our Invoice on the Client in Mumbai.

  63. sathish says:

    B) E1 AND E2 FORM

    A and B are ok .

    In this example my case “C” is end user (Customer ) not the dealer how to handle it in this case .

    What will be tax applicable .

    A- Pune , B- Chennai , C- Bangalore .

  64. Vikas says:

    Hi

    If
    A in Delhi
    B in Rajasthan
    C in Delhi

    B buy from A and sell to C
    means A send goods to C within delhi, through B

    In this case what will happen.
    and can have any doc/notification for same.

  65. pallav says:

    Dear Sir,

    My company is registered in ahmedabad. I have raised invoice to my party in bangalore under 2%CST against form C. But i have made local delivery of goods.

    So can i execute this sale under 2% CST against form C or i have to charge him full local VAT of 15% ?

    please guide. Matter is urgent

  66. SUKANTA LAHA says:

    Dear Sir,

    If ‘A’ company purchase goods from ‘B’ Company within same state and the goods sold to ‘C’ Company at another state but Company ‘A’ directly sent goods to Company ‘C’ .

    Now how represent the transaction in the books of Company ‘B’?? This is an E1 Transaction??

  67. Deepak Kumar says:

    Sir,
    We have registered ourselves to DVAT in FY 2013-14.
    Our Initial 2 Quarters were without sale & purchase hence we also do not submit our online returns as there was no transaction during this period.

    In 3rd Quarter of 2013-14 we came to know that the TIN has be Suspended, when we object the same by filling Dvat-38 after a long time of regular Visit to sales tax Office we some how manage to restore our TIN 10-07-2014.

    They imposed Penalty of RS. 32000/- for TIN and CST late Filling of returns for Q1 & Q2

    After Restoring the TIN we Immediately filed our online returns for Q3 and Q4 (2013-14) on 22-07-2014.

    Now the DVAT has again IMPOSED penalty of RS 37000/- each for TIN & CST for Late filling of Returns.

    Now My question is if our TIN was suspended how they could impose Penalty for the same period ???

    I am just fed-up with DVAT issue..

    We the businessmen are concern only with fair business.

    Please suggest me what best I can do in such situation.

  68. P.NARAYANA REDDY says:

    sir,
    I am NARAYANA REDDY, doing articleship in chennai
    You have given information about CST, AND VAT. That information is the best guide to me. I need that information but there is no copy and paste option

  69. M. AHMED says:

    Dear Anubhav,

    Kindly inform me if there are any procedure under the CST Act as to what are the requisite documents required by the sales tax department in order to collect E1 forms. Sales tax department is asking for the endorsed copy of the LR which our dealer has endorsed on the ultimate customer and also the receipt of ultimate customer on the LR.

    Pl advice, the correct method of collecting E1 forms from the sales tax department.

    With Best Regards,

  70. ashish says:

    dear ,

    my firm registered in UP and i made a sale ( Electronic Security Equipment) in Haryana, what is the CST rate will applicable , without C foam.
    please help me for this case.

  71. Rajendra Mistry says:

    Dear Sir,

    I have a chocolate manufacture company in gujarat. & our Finish Goods Stock Transfer in our C&F location for differencial States. So, I request you to provided information against Credit Reduce Ratio Format

  72. ramesh says:

    dear Mr. Anubhav,
    good article in clarifying the Forms.
    can you also pl. clarify the following?
    our company is a mfr of pharma products in Uttarakhand stock transfers to our branch in Hyd on F form, but physically sends the goods to our Agent in Bihar, who ultimately sells the goods in Bihar on VAt basis.
    our Hyd branch issues F form to Uttarakhand branch.
    is this transaction LEGAL and does not involve any litigation. which type of form (including the waybill ), if any is to be issued by our Agent in Bihar.
    thanks in advance,
    Ramesh challa

  73. GURMAIL SINGH says:

    R/s Sir
    i am a registered cement dealer (under Hvat and CST) in Kaithal Haryana state.
    i want to sale cement in Punjab state which is 10KM far away from my home
    business address.
    i want to open an authorised office/ branch to sale my cement in Punjab state also .
    what”s its procedure to sale cement in other state under govt. rules?
    please give me procedure to do it in leagal manner.
    thanking you
    with great regards –

  74. GURMAIL SINGH says:

    R/s Sir
    i am a registered cement dealer (under Hvat and CST) in Kaithal Haryana state.
    i want to sale cement in Punjab state which is 10KM far away from my home
    business address.
    i want to sale my cement in Punjab state also .
    what”s its procedure to sale cement in other state under govt. rules?
    please give me procedure to do it in leagal manner.
    thanking you
    with great regards

  75. afroz baig says:

    Dear Sir
    If our customer is within the state and ask us to deliver the goods to other state of his site.Can he issue the c forms to us.It is valid or not.

  76. Navin Poojary says:

    Hello:

    Sir, our foreign client placed an order to deliver the goods to their counterpart in Mangalore. So we placed an order to Bangalore party and delivered the goods in Mangalore as per the instruction from the abroad client.

    In this case How I need to bill my foreign client. Whether the full rate of CST need to be charged. Pl advise.

  77. Ramesh Jha says:

    Dear Anubhav, I am Manufacturer registered in Uttar Pradesh and planning to sell electrical Goods to a registered dealer in Haryana. for the below sale My company A — Uttar Pradesh, Buyer company B — Haryana End user company C — Haryana 1. Is this type of transaction eligible under section 6(2) of CST act? 2. Can my company A offer goods @ 2% CST against FORM – C to the buyer company B? 3. If the buyer B cannot issue me FORM – C , what is the rate of CST to be applied? 4. If buyer B wishes to sell the goods again to an another company C in Delhi and requires ‘E1′ form completed my company, Do i have to make change in CST rate or any other taxes involved? In this case what is the invoice to be sent along with the goods. Note : i do not want the end user to know what are the sale prices offered to my buyer.

  78. jupallishravankumar says:

    Dear sir

    Please let me know the execution procedure to be followed when customer placed order from chattisgarh state where they have cst registration and pleace order to us for supply of goods at other state where they dont have registration and end user is with individuals and customer asking to do invoicing on raipur but stocks to be delivered at other states,kindly please let me know the procedure to followed in such situations.

    Regards
    Shravan Kumar

  79. Debasish Basak says:

    Dear Sir
    I need to know that if I make two despatch to the same customer from two different state say Karnataka and Maharastra, and the customer issues a single C form mentioning both transactions in the same form as my company name is same in both the state- what would be the procedure to utilise the same C form in both the state.
    thanks & regards
    Debasish

  80. p.k.babu says:

    Dear sir,
    we are manufacturing welding electrodes at hyderabad telangana ( state) and we have brance office at visakhapatnam (A.P.). Can we send the material directly to customers against form f, with out sending the material to branch office in ap.
    if we send the material directly to customers in other state ,every time we should send the form f.

    regards
    p.k.babu

  81. Manish gupta says:

    Suppose i want to trasfer Tanker of Chemicals against F form from Punjab to UP
    As my Stockiest got Tanker and he trasfer to Party in U.P against U.P VAat Billing .
    Now i want to Known that if i Transfer to party directly but stockiest Change bill on the way for VAT purpose .IS it cumplosary to unloadtanker at stockiest point or we can send same tanker to Party there .

  82. Rohit says:

    Hello everyone.
    Please clarify the following case-

    X from Kanpur,U.P. wants to buy goods from Y in ahmedabad,Guj.
    Now x has to sell the entire lot to Z, a dealer in Kanpur but Z wants the delivery of goods at 4th party D in Chennai,A.P.

    The material will be directly dispatched from ahmedabad to chennai.

    What are the various Forms needed for this kind of sales.
    All the parties are registered dealers.

    Thanks
    Rohit

  83. kapil sharma says:

    Dear Anubhav,
    I am a registered dealer in delhi. Want to do sale in trasit.
    Pick up of material from Maharashtra city A (against 2% cst)
    myself based in delhi.
    The receiver of goods is in Maharashtra city B.
    Can I send the material with transfer of title of goods i.e., GR but without issue of E form.

  84. pradeep says:

    Sir/ Madam
    I have recently joined in a comp.
    I have a issue here, follows : Goods are delivered within the state to a job worker of our client,( here goods have not crossed border). But when we bill our supplier, we charge CST to them.
    Kindly clarify and suggest.
    Thanks
    Pradeep

  85. arindam says:

    Dear Sir,

    When party A (kolkata) purchases goods from Party B (kolkata) and delivers the goods to Party C (Bihar).

    What will be the VAT/CST charge in the process?

    As I know for same state no CST will be charged. So local VAT is charged.

    Now for Party B to Party C which is interstate sale can be charged as CST against C form.

    So I want to know whether Party B will consume any loss in the process?

    Thanks in advance. waiting for valuable reply.

  86. anubhav jain says:

    @ praveen joshi
    without clearing your dues u cant issue any form, it will show error.
    at respective tax website there may be the option for the same if otherwise contact your assessing authority.
    @anil if u r exclusively dealing in exempted goods (not 0%) then u can done away the liabiliy of registration.

    @yogesh jain- Form E is used to make subsequent sale exempt but in your case goods are already exempt so i think no ned of Form E.

  87. Sachin Pawar says:

    Dear Anubhav,
    I am dealer (Pvt ltd Co.) registered in Tamilnadu and planning to sell electromechanical components (imported from abroad) to a registered dealer in New Delhi. for the below sale
    My company A — Chennai (Tamilnadu)
    Buyer company B — Delhi
    End user company C — Delhi
    1. Is this type of transaction eligible under section 6(2) of CST act?
    2. Can my company A offer goods @ 2% CST against FORM – C to the buyer company B?
    3. If the buyer B cannot issue me FORM – C , what is the rate of CST to be applied?
    4. If buyer B wishes to sell the goods again to an another company C in Delhi and requires ‘E1′ form completed my company, Do i have to make change in CST rate or any other taxes involved? In this case what is the invoice to be sent along with the goods. Note : i do not want the end user to know what are the sale prices offered to my buyer.

  88. Yogesh Jain says:

    Dear Anubhav,

    I am a registered dealer in rajasthan. Want to do sale in trasit

    pick up of material from UP (against 2% cst)

    myself based in rajasthan (item is tax free in rajasthan)

    2nd purchaser or receiver of goods is in Himachal Pradesh (Item is tax free in Himachal)

    Can I send the material with transfer of title of goods i.e., GR but without issue of E form.
    Please comment

  89. Shubho says:

    We are importers of some International Brands ! Based on Mumbai.

    If I dispatch goods to our One of SOR party in Bangalore/Delhi Kolkata on June 29th. and Party received the material after 4th July.
    >> We Booked Invoice in June Month.
    >> Party received the material and take in their account in July month.

    Q.1# as quarter changed,is their any problem to explain the Transit delay to Department. (Because C-form transaction value of 1st quarter is different to Both the parties).

  90. anil says:

    Further to query of Ms. Preeti on April 30 & your reply of May 18

    What if only exclusively Goods which are exempt like say Children Books are to be sold interstate. Here there would be no tax implication ?

    Regards

  91. praveen joshi says:

    dear ,
    when i m going for online C form from website, its showing me the demand and the penalty which are pending..how could i know the demand or penalty arise of??

  92. jai says:

    Dear sir,
    this is regarding the year 2006-07
    I have recently received the C form from my party for the year 2006-07
    but the Sales tax department is not accepting the same on grounds that hand written C forms are not acceptable and E C forms are mandatory from the year 2006-07. is that right?cant they accpet the hand written C form which the party has given us….?kindly suggest

  93. umesh says:

    Dear anubahav,

    our customer resides in karnataka
    materials are dispatching to tamilnadu
    paymet is giving by karnataka resides customer

    both are register under cst act.

    my question is which form do i need to collect.

  94. anubhav jain says:

    Preeti Mam,
    U cant do interstate sale without CST registration ..
    It better to take registration and enjoy at the time of interstate purchase the concessional rate of tax.

  95. anubhav jain says:

    T.D.
    I think u cant do that .
    first add ur branch in the RC , have TIN.

    For which state and for what purpose u r using form 402 ?

  96. anubhav jain says:

    Sankaranarayanan ji
    If u r purchasing locally and then sending goods out otherthan by the way of sale then ….. ITC claimed need to be reveresed either @2 %, 4% …depende from state to state.

  97. Preeti says:

    Dear Sir,

    Please share the procedure of Billing Sale of goods with me if the case is as follows :
    1. My Company is not registered under VAT or CST.
    2. I want to sale goods from Delhi to Jaipur.
    3. Is it necessary to take the VAT registration if I am doing Interstate sale?
    4. Turnover of Company is not more than Rs. 10 Lac.
    5. Should I make invoice without tax?
    6. What if I don’t want to take VAT or CST registration but still I have to send that material to Jaipur.

  98. T.D. says:

    Dear all,

    I have my tin registered at X place /city now I want to issue invoice from Y place/city which is currently not registered with my tin…but will apply for adding of branch after wards. ..can I do that? If yea what to fill in form 402 for Material to be consigned for interstate to a customer in sez zone…pl help I m in big trouble. ….

  99. Pawan says:

    Dear Anubhav,

    Can you please let me know what is the right acceptable format of raising a Form ‘E1’ invoice….????

    I get material directly from Philips and and endorse the goods receipt to party as it is delivered directly to my client’s destination. But what is or if any the correct way to make the billing invoice, which is accepatable to the sales tax dept…??? Can we open the CST charged by my principals i.e.Philips on my party e-1 billing , so that my bill can be passed accordingly by my clients accounts dept..??

    Kindly clarify.

    Thanks and Regards

    Pawan

  100. S.Girimurugan says:

    Sir, Based at Salem – Tamilnadu, I am purchasing equipment from Bangalore for which I am paying Excise Duty & VAT 2% against C form and I am billing that equipment with my profit and TN VAT 14.5 % to Granite manufacturing industry (100% EOU)in Tamilnadu.
    I am planning to make it as E1 Sale (Sale in transit process) since I am not taking delivery of the goods.
    In this case
    What are all the taxes will be charged me by my supplier when I am purchasing?
    How I can add my profit?
    How can I bill it to my buyer?
    Should I add any tax in addition to my profit?
    Should I mark my invoice as E1 Sale?

    And
    In E1 sale, is there any provisions to get Excise Duty exemption for buyer since the buyer is 100% EOU manufacturer. Buyer has been claiming ED exemptions for other kind of machinery purchase. My supplier and buyer are registered with Excise. But I am not a registered one.

  101. Ramesh says:

    Dear Anubhav,

    I am dealer (Pvt ltd Co.) registered in Tamilnadu and planning to sell electromechanical components (imported from abroad) to a registered dealer in New Delhi. for the below sale

    My company A — Chennai (Tamilnadu)
    Buyer company B — Delhi
    End user company C — Delhi

    1. Is this type of transaction eligible under section 6(2) of CST act?
    2. Can my company A offer goods @ 2% CST against FORM – C to the buyer company B?
    3. If the buyer B cannot issue me FORM – C , what is the rate of CST to be applied?
    4. If buyer B wishes to sell the goods again to an another company C in Delhi and requires ‘E1’ form completed my company, Do i have to make change in CST rate or any other taxes involved? In this case what is the invoice to be sent along with the goods. Note : i do not want the end user to know what are the sale prices offered to my buyer.

    Pls comment

  102. Vedprakash sharma says:

    Dear Mr. Anubhav,

    Thanks for the sharing the information related to Forms.
    Pl let me know your views in following case.

    I have purchase Goods from Silvass to Mumbai against C form.
    My querry is
    1. Part of the material is rejected by me & issued C form actually accepted quantity. Rejected quantity is sent to party on My excise Invoice with ref. to purchase Invoice. In This case, is there any form is to be received from My Silvassa Vendor.

    2. I have issued C form for Entire quantity. Later on the part quantity is rejected, for this i returned goods through my Excise Gate pass mentioning the reference of purchase invoice. Should vendor is liable to issue any form in this case.
    3. With ref. to Sr. No.2, I have issued C form for Entire material & vendor is not issuing any form for material returned. What would be my liability.

    Pl comment.

    Best Regards,
    Vedprakash Sharma

  103. Shashibhushan Sharma says:

    Dear Anubhav

    One correction in the provision relating to issuance of EI and EII. These forms are issued by the selling dealer, only when the goods are further sold by his purchasing dealer.

    In the quoted example, Form EII will not be issued at all, because goods are not sold by C to any other dealer.
    “In above example A of Mumbai will receive C form from B of Delhi & will issue declaration in E-I form to B of Delhi .Later on B of Delhi will issue declaration in Form E-II to C of Jaipur against which C will furnish C form to B (Delhi).”

    This correction should be made in your above article, to avoid, any misunderstanding by personnel, who are reading this article for their understanding.

  104. Arvind says:

    Dear Anubhav,

    The example given by you regarding E1-EII transaction is not of E-II transaction. But it is of only E-1 transaction. In E-II transaction Four parties are involved, in which transfer of title through document happens between three parties.

    Party A gives E-1 to Party B and take Form C from Party B
    Party B gives E-2 to Party C and take Form C from Party C
    Party C don’t give any Form to Party D but take Form C from Party D

  105. Bhuwan bhatt says:

    In this case you have to collect e1 form from your local dealer and issue c form to him
    Check that the invoice is indorced properly with the name of main purchaser

  106. anubhav says:

    If u r purchasing from with state then no requirement for c form .
    As per my underatanding of ur question after purchasing u are selling to a customer in mumbai it will not effect anything

  107. Sharath says:

    Dear Anubhav,

    Good article. I wanted to know for the following case how it will be treated.

    I am a trader in Bangalore. I am buying from another trader in Bangalore. But the goods are required to be delivered to one of my customer in Mumbai. And my vendor is charging me 2% against C Form. How will i issue C form to my vendor being in the same state and what forms must I collect from my vendor and what forms must I issue to my customer. Please advise.
    Rgds-Sharath

Leave a Comment

Your email address will not be published. Required fields are marked *