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.
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.
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
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
Dear sir,
My company as a provide job works,then we can purchase goods(Chemicals & Colors) against the C Form.
Thanks & Best regards
Abhay
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
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.
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?
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?
I want know abour uttar pradesh vat rate as per product wise
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
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
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
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’
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
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
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.
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
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.
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
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.
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.
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.
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.
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.
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
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.
what will be the CST rate as for new budget 2015-16.
we want to sale used loader in maharastra state but we have not registered in gujarat sales tax
kindly suggest us
Rajasthan sales tax 2013-14 vat 10 not submitted in this case c form issued or not plz help
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.
i want to send some materials from bangalore to chennai for commercial purpose, so what ever documents required?
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
what will be the rate of taxes if laptop sold from Kolkata to other state & Ranchi to Bangalore both cases against C Form
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
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.
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
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.
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.
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 ?
sir,
plz tel me about excise
and send me excise report format in excel sheet
my email-yaspal.excl@gmail.com
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
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.
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
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
Sir,
My dealer whom I sold the goods is not giving cform what can I do in such case.
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.
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 .
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.
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
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??
I want to sell a material from Haryana to Delhi dealer what tax rate would be applicable without C form
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.