Purchase from unregistered dealer in different state

[Vaibhav Paliwal]

Dear Experts, Pl Advise.

 

I am starting an online store. The firm is registered in Bihar. In this online store, I will be purchasing goods from different states in India. In most of the cases, the purchase will be done from unregistered dealers. These goods, after purchase, are not being transported to Bihar for stock. They will be sent directly to the consumer, from that state. The sales will happen directly to consumer, who will be in any state of India.

eg: B, a consumer buys product X from my online portal. B is from Bangalore, Product X is from Kashmir and firm is registered in Bihar. Product X, goes directly to B from Kashmir. The billing is done by our firm, which is registered in Bihar.

 

Pl Advice on following:

The unregistered dealer will not be able to generate invoice. Even if he generates invoice, the he will not be having TIN / VAT number. And we are selling goods by applying CST / VAT charges (which ever is applicable).

1) In Purchase, will the invoice amount be considered as including tax paid? In Case No, then do we have pay CST above the price and to which state government?

2) Is form C or any other form has to be filled for purchase?

3) How is tax applicable in our invoice?

4) Any other important point to be kept in mind?

AI Summary

Starting Online Store: Tax Implications for Interstate Purchases from Unregistered Dealers; CST Registration and Invoice Clarity Needed. An individual is starting an online store registered in Bihar, purchasing goods from different states in India, primarily from unregistered dealers. The goods are sent directly to consumers without being transported to Bihar. The main concerns include whether the invoice amount includes tax, the need for forms like Form C, and tax applicability on invoices. Experts advise that unregistered dealers cannot make interstate sales, and such transactions attract CST, payable to the state where the goods originate. The business must register for CST in states like J&K and show tax components separately on invoices.