Interstate Purchase of Capital Goods Macninery

[Vimal Goel]

Hi everyone ! I'm currently having a steel processing unit in Bangalore.

I'm purchasing a custom made machine for Slitting of Steel Coils form a manufacturer in Rajkot(Gujrat)

My auditor says that I cannot issue a 'C' form against the machinery purchase form Rajkot.

Now, I'm forced to pay 5% CST for the same.

Can anyone guide me on this rule with proper documentation proof.

Will be of great help.

Thanks,

Vimal Kumar Goel 

+9199005534321

AI Summary

Buyer of Custom Machinery Challenges 5% CST Requirement, Citing Rule 13 for 'C' Form Eligibility An individual with a steel processing unit in Bangalore is purchasing a custom-made machine from a manufacturer in Rajkot, Gujarat. Their auditor advised that a 'C' form cannot be issued for this machinery purchase, necessitating a 5% Central Sales Tax (CST) payment. Two responses were provided: one citing Rule 13 of the Central Sales Tax (Registration and Turnover) Rules, 1957, which allows issuing a 'C' form for machinery used in manufacturing or processing goods for sale; the other confirming the possibility if the buyer's CST registration includes such machinery.