Interstate supply with full rate of CST

[Bhalchandra Ramdasi]

Respected Sir,

My Customer is in Gujarat. We are in Maharashtra. We have to supply the material to him from our Vendor in Maharashtra and other states. Customer can not give form 'C'. Our customer wants to avail Cenvat credit.

1]Can we supply the material directly to customer from our vendor in Maharashtra. Buyer will be us & Consignee will be our customer so that our customer can avail cenvat credit. We will raise invoice from maharashtra on our customer in Gujarat charging full rate of CST.

2]Can we supply the material directly to customer from our vendor other than Maharashtra & Gujrat. Buyer will be us & Consignee will be our customer so that our customer can avail cenvat credit. We will raise invoice from maharashtra on our customer in Gujarat charging full rate of CST.

Please advice.

 

AI Summary

Maharashtra business can supply to Gujarat without form 'C'; use E-1 transactions under CST Act Section 6(2). A business in Maharashtra queries about supplying materials to a customer in Gujarat without form 'C' while allowing the customer to avail Cenvat credit. The response outlines that if both parties are registered dealers, materials can be shipped directly from Maharashtra vendors. The Maharashtra business invoices the Gujarat customer with full CST, allowing Cenvat credit based on vendor bills. For vendors in Gujarat or other states, an E-1 transaction under section 6(2) of the CST Act is suggested, with appropriate road permits required. The process involves issuing a consolidated commercial invoice, considering costs and margins.