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


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.



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.


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.


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.


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.


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

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  1. vishalbhatt says:

    In FY 1516 we had a manufacturing unit in Ahmedabad and a sales depot in Jodhpur Rajasthan.
    We had sent a FULL TRUCKLOAD MATERIAL from Ahmedabad to a Party in Jaisalmer.
    Invoice was made in name of OUR Jodhpur Depot Against Form F, goods delivererd to Jaisalmer. Our Jodhpur Depot then invoiced the Jaisalmer party under Rajasthan Vat 5%.
    Can Rajasthan Vat deny me FORM F as the material( FULL TRUCKLOAD ) was sent directly to Jaisalmer and not routed through Jodhpur.

  2. 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”

  3. 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

  4. 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..

  5. 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

  6. 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 ?

  7. 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.

  8. 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

  9. 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…….

  10. 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

  11. 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)…

  12. 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?

  13. 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.

  14. 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??

  15. Amol Mandale says:

    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.

  16. 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.

  17. 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.

  18. Form I says:


    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


  19. SRINIVAS says:


    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

  20. 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

  21. PRIT says:

    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

  22. 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.

  23. 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

  24. 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

  25. 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

  26. 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

  27. 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

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July 2024