CA Yogesh Sharma


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 F used to transfer goods from one branch to other in different state without making it as sale form E1 and E2 used when interstate sale or purchase which are effected by mere transfer of document of title (subsequent sale).



It 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.vat 1

*One C Form/One Quarter/Dealer

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

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


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) 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.vat 2One F Form/One Month/Dealer

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.

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.


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.

  • Ashok has to dispatch goods to Chandan Jaipur (Rajasthan) but Invoice done on Bhanu in Delhivat 3
  • A will receive C Form from Bhanu of Delhi and will issue declaration in E-I form to Bhanu
  • Bhanu Sells Goods to C in Jaipur-Rajasthan
  • Bhanu of Delhi will issue declaration in Form E-II to Chandan of Jaipur against which Chandan will furnish C form to Bhanu (Delhi).
  • Chandan Ultimately receives the goods.
  • Chandan will issue C Form to Bhanu and will receive E-II Form from him.

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.

Provisions of C form applicable to E1/E2 forms: Some provisions which are applicable to C forms are also applicable to E-I/E-II forms. For example one declaration for one quarter, indemnity bond if form is lost, issue of duplicate form, sales tax concession is not available if the forms are not submitted.

Latest case of Delhi High Court and Supreme court’s verdict in A&G Projects and Technologies Ltd case: The Supreme court in A & G Projects and Technologies Ltd v. State of Karnataka [2209] 19 VST 239; [2009] 2 SCC 326 explained the scheme of section 6(2) of CST Act and held that once the first inter-state sale has suffered CST then subsequent sales effected by transfer of documents during transit will be exempt provided conditions prescribed u/s 6(2) are satisfied. This has been done to remove the cascading effect. The observation of the Supreme Court in the said case is provided as below

“Analysing Section 6(2), it is clear that sub-section (2) has been introduced in Section 6 in order to avoid cascading effect of multiple taxation. A subsequent sale falling under sub-section (2), which satisfies the conditions mentioned in the proviso thereto, is exempt from tax as the first sale has been subjected to tax under sub-section (1) of Section 6 of the CST ACT 1956. Thus, in order to attract Section 6(2), it is essential that the concerned sale must be a subsequent inter-State sale affected by transfer of documents of title to the goods during the movement of the goods from one State to another and it must be preceded by a prior inter-State sale. It is only then that Section 6(2) may be attracted in order to make such subsequent sale exempt from levy of sales tax. However, the proviso to sub-section (2) of Section 6 prescribes further conditions and it is only on fulfilment of those conditions that the subsequent sale stands exempted. If those conditions are not satisfied then, notwithstanding the fact that the sale is a subsequent sale, the exemption would not be admissible to such subsequent sales. This is the scheme of Section 6 of the CST ACT 1956.”

 In a recent case namely Mitsubishi Corp. Ind. Ltd. Vs Value Added Tax officer decided by Delhi High court wherein sighting the above observation of the Supreme court it was argued by the counsel for the state that if the first Inter State sales is an exempted sale then the subsequent sales should not get the benefit of Section 6(2) of CST Act even if all the conditions u/s 6(2) are satisfied since the first sales had not suffered tax. The Delhi High Court in this regard observed as under:

“A reading of the said portion of the Supreme Court decision only indicates that where the first sale is taxed, the second sale would be exempted because of the object of avoiding the cascading effect. However, the Supreme Court decision cannot be understood to mean that where the first sale is exempted, the second sale must be taxed even though the conditions under Section 6(2) for exemption stand satisfied.”

Thus even if the first sales was exempted due to exemption on tax available in the state where from the first sale is made the subsequent sales in other state will be exempted if the conditions u/s 6(2) of CST Act are satisfied.

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53 responses to “Sales Tax C, E & F Forms Demystified”

  1. nisha says:

    can we clain C form if we are not register under CST

  2. Pradeep Kumar says:

    I Need a information regards
    What is meant by Form H
    What is meant by ER2 form
    What is meant by Pre Eport sales
    I like to know if we exort the good applicable tax form name(Example : For ER2)
    I like to know if we Import the good applicable tax form name (Example Form H)

  3. p n shah says:

    hello sir,
    I have trading advise how to obtain c form for year 2009-10,


    Respected Sir,

    What we have to do. If we have not Submitted any Details to Generat Form No. F against Sales Return ?

    We have taken adjusted such goods return in our Account.

    but our Consultant had not inform us about it.

    So let me inform us about it as early as possible.

  5. Neha says:

    What is vat(r) & vat(t)?

  6. Sunil Jadhav says:

    Sir, I have received the notice for submission of c/f from. I have submitted all forms as we have mentioned in 704.But while checking the declaration forms he asked for sales / purchase register and other details also. My question is that can he ask for all these things without MVAT assessment notice?

  7. Sunil J. says:

    Sir, I have received the notice for submission of c/f from. I have submitted all forms as we have mentioned in 704.But while checking the declaration forms he asked for sales / purchase register and other details also. My question is that can he ask for all these things without MVAT assessment notice?

  8. Sugandh Srivastava says:

    My company failed to provide C Form to our vendor and hence they charged us with the balance tax and interest @ 18% on it. Are we liable to deduct TDS on the interest paid to the vendor? if not, then why?

  9. Reshma says:

    Ters a place called mahe wch is found in d geographical area of kerala..but mahe cums under puducherry… fr tem puducherry is a longer route…so if d dealer purchases or sells its goods from/to kerala dealer…tat wl b treated as cst purchase/ sales right…wthr do tey hv ny spcl provisions or benefits in tis regard

  10. sekar says:

    We are supplying our goods to Orrissa what is the c forms formate for collecting of C from
    orrisa Commercial tax office at sombalpur

  11. Vijay says:

    we have 2 branches in Maharashtra. supposed we are sending the material one location to another location i.e. Maharashtra state. is the applicable the F Form & what is procedure?

  12. ram pal saini says:

    we have 2 firm same name , 1 st in chandiagrh, 2 nd in panchkula , we are sale c form in chandiagrh. , we stock trf into panchkula , after that we are sale agst c form to chandigarh same material to party. is it ok or not

  13. raja says:

    form c procedure

  14. raja says:

    our company have hotel business buying chemical in cst purchase it is elible for form c

  15. jayaraj says:



    Sir, i may need guidance from u.







  17. Mr. Atul says:

    Dear Sir,
    I am registered Dealer in Karnataka under CST. I am purchasing goods from Tax Exempted area from Silvassa under C Form & selling it in Maharashtra under C-E 1 Form. During assessment of FY 2012/13 I have not received C Form from Sales Tax Department Karnataka but Authority is asking for E 1 Form. I am unable to get E 1 Form unless I am submitting C Forms received from Karnataka. Please give me evidence that Sales Tax Department have to release C form first then I will Submit E 1 Forms.

  18. M.Panneerselvam says:

    Form f received with omission of transfer details in maharastra state.what are the procedures to include the omission transfer in that form.

  19. Asis Protihar says:

    I’m a manufacturer at Chattisgarh. I sold goods to the dealer at Odissa. The sales invoice raised and goods sent in the month of January-2015. In the month of May, I came to know that the materials was not accepted by the customer for quality problem and it was then under analysis at their end. In June, they accepted the materials and shown in their books as purchase and sold to their customer at Jharkhand.
    On hearing, I also reversed sale in the year 2014-15 and recognised the same in 2015-16 1st quarter. Accordingly, I submitted sales tax revised return of 2014-15 (4th Qr.) and shown the sales in the 1st. Qr. of 2015-16.
    Recently the my customer issued me the Form-C with a request to issue E1 for the 1st. Qr. 2015-16.
    While filing application on-line for E1 (Chattisgarh), it denied to accept the application for the year 2015-16 as because the date of Invoice Jan-15. On enquiry at the department, it is learnt that the E1 could not be issued for 2015-16 due to the date of invoice. And there is no provision in the state sales tax rule for manual issue of E1.
    My question is that although the matter is genuine and every compliance is there, why should I be deprived of the E1 and liable for consequences.
    Asis Protihar

  20. Rishab G says:


    Ours is a SSI manufacturing unit in Punjab. We sold some goods against Form I to the customer in Andhra Pradesh in March 2014. Now after one year, the customer has informed us that they cannot issue Form I to us. The customer has instead sent us the C Form i.e. @ 2% CST.

    Can we now change the Sales from I form to C form? Can we file Revised CST Return for the period after changing the sales from I form to C form?

    Our sales tax officer is refusing to accept C Form with 2% CST plus interest for the delay.

    Sales tax officer is insisting to pay full VAT tax on the sales, with interest and penalty or I form only.The reason cited by him is that once annual return has been file no revision can be made what so ever, as per CST (Punjab rules).

    Can the sales tax officer refuse to accept C Form, when it is a genuine Inter-state sales with lorry receipt details etc.

    Please advice. Thanks.

  21. mohd rashid says:

    we are a registered delaer in delhi. we purchase machine from intersate delear but we miss that to shiwing in purchase. now party asking for C F ORM. AND WE HAVE DONE audit. is there any way to settle this
    please help us
    contact no 9717622787
    name – mohd rashid

  22. Arokya says:


    A,B And C , we are C , we issued c form to b , how to issue form ( taxable ( Basic + ed )+ tax ( cst ) is right

  23. HARISH says:


  24. ASHFAK says:

    dear sir,

    i am a importer,

    i have sales my stock mvat to goa vat under f form sales to party, goa party not paid any tax in goa how can i claimed SAD REFUND.

  25. manoj says:

    I have a query that in case of vat exempted on goods in a state,sells the goods to other state can impose CST on the said goods and require C form.

  26. JAYDEEP says:

    i am a manufacturer at west bengal and i have purchased a heavy duty vehicle from volvo india , bangalore at cst 2% through a dealer from kolkata at a price of rs 30 lakh. the dealer from kolkata have issued me the invoice without charging 2% cst and waybill part 2 has been issued to me by volvo india, bangalore for an amount of rs 2610333.
    so my doubt is that on whose name i should provide c form and at what value. and i also have a doubt that whether the dealer from kolkata would provide me with e1 form or not.

  27. Sanjay says:

    i Can Issue C form With Invoice Value (Basic+Excise+cst+freight+other)
    Pl Clear The Issue

  28. Brand Kuldeep Kashyap says:

    After take out the information about C,E & F-form , I am very glad n Want to give bigger thanks , so Accept my thanks and would provide like these information in this site whose are useful to us.

    • Sonu rajput says:



      (Status as on June 04, 2010)

      To carry out the purposes of the Central Sales Tax Act, 1956, three types of rules have been framed under such Act. In the name of the Central Sales Tax (Registration & Turnover) Rules, 1957, rules have been framed by the Central Government, second type of rules have been framed by respective States. They have given then their own name. Common name is “The Central Sales Tax (Name of State) Rules, 1957”. For example, the Uttar Pradesh State Government has framed “The Central Sales Tax (Uttar Pradesh) Rules, 1957”, State Government of Punjab has framed rules in the name of ”The Central Sales Tax (Punjab) Rules,1957”, etc. Third types of rules, in the name of “The Central Sales Tax (Union Territories) Rules, 1957”, have been framed by the Central Government for Union Territories.

      Certain forms have been prescribed in each type of rules. Forms prescribed in the Central Sales Tax (Registration & Turnover) Rules, 1957 are applicable in all States and Union Territories. Forms prescribed in the rules framed by States are applicable in the respective States and Forms prescribed in the rules “The Central Sales Tax (Union Territories) Rules, 1957” are applicable in all Union Territories.

      In the State Rules and the Union Territory Rules, the most important form is Form of Return. Other forms relate to list of registered dealers and format of certain registers. The Central Sales Tax (Registration & Turnover) Rules, 1957, prescribe following Forms:
      FORM A
      This form is format of application for obtaining registration certificate under the Central Sales Tax Act, 1956. This is stationery form usually supplied free of cost by the Sales Tax / VAT / Commercial Tax Departments of the States.
      FORM B
      Form B is the format of the registration certificate. In this format Registration Certificate is issued to a dealer by the State Sales Tax / VAT / Commercial Tax Department.
      FORM C
      Form C is security printed form and is issued by the State Sales Tax / VAT / Commercial Tax Department to a registered dealer who makes inter-state purchase of goods mentioned in his registration certificate. This form is divided in three portions marked Original, Duplicate and Counter Foil. Purchasing dealer, after making relevant entries and after putting his signatures issues portions marked Original and Duplicate to the selling dealer of the goods, the details of which have been given on the form.

      The selling dealer presents Original Copy before its assessing authority for claiming exemption from or reduction in rate of tax, as the law may provide. Irrespective of rate of tax applicable to sale of certain goods within a State, where such rate of tax on sale of such goods within the State is higher than 2%, the purchasing dealer, making inter-state purchase, can, on the basis of Form C, purchase such goods after paying tax to the seller only @2%. In absence of Form-C, purchasing dealer would have been liable for payment of tax at the same rate which is applicable to sale of such goods within the State of selling dealer.
      Single Form C can cover transactions of sales made in between same two dealers during the period of one quarter of a financial year.
      FORM D
      This form has been omitted.

      FORM E1 /
      FORM E2
      Clause (b) of section 3 of the Central Sales Tax Act, 1957 defines an inter-state sale or purchase which is effected by transfer of document of title to the goods during their movement from one State to another. Such sale is also referred to as sale in transit. In case of such a sale, selling dealer endorses document of title to goods in favour of purchasing dealer. The purchasing dealer either may take delivery of goods from the common carrier on the basis of document of title to goods or he may also effect sale to another person by further transfer of such documents of title to the goods. Before delivery of goods is taken in the State of delivery, several inter-state sales can be effected by way of transfer of documents of title to goods. For single journey of goods from the State of sale to the State of delivery, first inter-state sale is taxed in the State from which journey of goods commences. Where first selling dealer is liable to pay tax on first sale, all other sales, effected by transfer of document of title to goods, are exempt from levy of tax if the selling dealer-
      (i) obtains Form-C from the purchasing dealer; and
      Form-E1 from the selling dealer where it is the second inter-state sale and Form-E2 where it is any inter-state sale subsequent to second inter-state sale.
      Form-C is always received by the selling dealer form its purchasing dealer. Form-E1 is issued (on demand) to the first purchasing dealer and in all other cases, Form E2 is issued by selling dealer to their purchasing dealer, if such purchasing dealer require such form for the purpose of claiming exemption on inter-state sale effected by transfer of documents of title to goods. Blank Form E1 and Form E2 are issued to registered dealers by the Sales Tax / VAT / Commercial Tax Department of the selling dealer.

      FORM F
      Goods may also be moved from one State to another State and may be delivered in other State without a sale. A principal may transfer his goods to his agent, head office or manufacturing unit in one State may transfer its goods to its branches or depots in other States, a purchasing agent may dispatch goods to its principal in other State. In all such cases, there is no inter-state sale. Also no sale is effected during their movement of goods from one State to another. For claiming that goods have moved from one State to another other than by reason of sale, the consignor of the goods is required to produce Form F, duly filled and signed by the consignee of the goods.
      Blank Forms F are issued by the Sales Tax / VAT / Commercial Tax Department of the State, in which goods are delivered, to the consignee dealer. For this, consignee should be registered in the State in which goods are to be delivered. Recently, in case of M/s Ambika Steels, the Hon’ble Supreme Court has also upheld the liability of furnishing of Form-F in cases in which goods are sent for job work or goods returned are received back.
      Form-F is issued by transferee of goods to transferor of goods and one single form may cover consignments of goods transferred during one calendar month.

      FORM G
      It is the format of Indemnity Bond. Where, Indemnity Bond is required to be furnished under any provision of the Central Sales Tax Act. 1957, it is to be submitted in the format prescribed in Form G.

      FORM H
      Where an exporter (direct exporter) receives an export order and for fulfitting such order, makes purchase of the goods, under the export order, then such purchase of such goods by the exporter and the sale of such goods made by selling dealer to exporter, are also deemed to be in the course of export of the goods out of the territory of India subject to the condition that exporter issues certificate in Form H to the selling dealer.
      For such sale to exporter, the exporter issues Form H to the selling dealer and in such Form H, he certifies that –

      goods were purchased after, and for the purpose of complying with, the agreement or order no………. dt……….. for or in relation to such export.
      goods purchased have been sold in the course of export out of the territory of India; and

      if goods are re-imported into India purchasing dealer will informed to the assessing authority of selling dealer.

      Provisions of furnishing of Form H do not apply where an exporter makes random purchases of goods and whenever he gets an export order; he supplies goods out of his stocks. Also they do not apply where purchased and exported goods are different.

      FORM I
      Inter-state sale, made to a Special Economic Zone (SEZ) dealer registered under the Central Sales Tax Act, 1956 for use by him in authorized operations in the unit in SEZ, is exempt from payment of the Central Sales Tax if the selling dealer furnishes Form I to its assessing authority after obtaining it from the SEZ dealer. Blank Forms I are obtained by SEZ dealer from office of the Development Commissioner of SEZ in which his unit is located.

      FORM J
      Sub-section (3) of section 6 of the Central Sales Tax Act, 1956 provides for granting exemption from tax on inter-state sales of any goods made to any official, personnel, consular or diplomatic agent of-
      (i) any foreign diplomatic mission or consulate in India; or
      (ii) the United Nations or any other similar international body,

      entitled to enjoy privileges under any convention or agreement to which India is a party or under any law for the time being in force, if such official, personnel, consular or diplomatic agent, as the case may be, has purchased such goods for himself or for the purpose of such mission, consulate, United Nations or other body.

      Exemption to selling dealer will be available only if he furnishes certificate in Form-I, obtained from the person purchasing goods.

      Duty filled Form C, Form E1, Form E2 and Form F are to be submitted by the selling dealer to its assessing authority of Sales Tax / VAT / Commercial Tax Department within a period of 3 months, starting immediate after expiry of the period to which transactions entered on the form relate. All other forms, prescribed in the Central Sales Tax Rule, 1957 can be presented before the assessing authority till the assessment by first assessing authority.


      ADD YOUR VIEWS For: Article Serial No.7 REPORT ABUSE

  29. G.H.Dash says:

    A dealer of Odisha send damaged tyres received from buyers within the warranty period to its principal outside Odisha. In this case declaration in form ‘F’ is mandatory or not ?

  30. VIRENDRA says:

    I am registered in delhi sales tax in automobiles, and machinery items i can sale tax free goods ( shoes use for labour)

  31. DR.K.MGOPALE says:

    Do we need to issue f-form against interstate stock transfer of tax free goods like poultry / cattle feed supplements ?


  32. vishal kumar says:

    in c form , what value should be issued, give me detail about valuation,

  33. Seema Kulkarni says:

    If I am supplier. I am selling goods to party at Tamilnadu. The party is sending me monthly C Forms. Can I accept all 12 C Forms or only quarterly C Forms are acceptable? That means all 12 C forms will be valid or only 4 will be valid and remaining 8 forms will be rejected? If yes then why? If no then please give me proper reference about that. Kindly reply urgently.

  34. ramesh says:

    sir i am cotton business iam selling f.p.cotton bales to export co ,(galiyakotawal )but he was not giving h form what can i do

  35. LALIT says:


  36. RAMANUJ says:

    FORM H

  37. siva says:

    If in E2 sale the seller and purchaser are from same state. Then shall we issue Form-C to the seller. But the E1 sale is of different states are Form-C is issued in E1 sale. Pls,reply me….

  38. Vinit says:

    I am registered dealer in maharashtra. I want to purchase good from chattisgarh and sell it in chattisgarh. What will be sales tax liability and form reqd?

  39. parag Sharma says:

    I am shoes supplier from agra,recently i shiped shoes to some in pune but he rejected the shipment i asked for return but he said transporter is asking for form c.please guide me hiw he can shipback product to me.

  40. VICKY says:

    plz explaine E1/E2 CHAIN

  41. nimey says:

    Can I issue the E1 forms to the customer on quarterly basis like how we issue the FORM-C to our vendors, please clarify urgently

  42. NEHA says:

    f form is for all state

  43. rishabh says:

    sir im going to open n enterprises which will supply the spare parts to the plant n locomotive parts to various plants n arailway allso across india
    so wht kind of registration do i required to get a TIN NO and to get a tag
    allso tell me what other registration is needed n wht abt form c n all

  44. KRISHNA says:

    Why the provision of Form C.

  45. KRISHNA says:

    Why the provision of “Form C”.

  46. awadhesh says:

    purchaser issued c-form as per the goods receipt date not as per invoice date.provide solution

  47. jay says:

    In yr example for 6(2) sales, C will issue C form to B, but there is no need for B to issue any EII form, as the sale ends with C. C being the ultimate customer, as per yr illustration has no obligation to collect an EII form. Pl re-chk the provisions.

  48. Jigar Upadhyay says:

    Nice article, good work

  49. Jayant says:

    Nice article good work…

  50. Sachin Gosavi says:

    Good work! keep it up!

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