Form I to be issued by the sez buyer

[Ravikumar muthusamy]

Dear Experts

Our company In Tamilnad supplied goods to buyer in SEZ within the state and also other states against their SEZ notification. But the sales tax officer demands Form I from the sez buyer within TN and CST 2 percent for SEZ sales to other state SEZ buyers,

 

pls clarify on this validiity

regards

ravikumar

AI Summary

Form I for SEZ sales ensures exemption from CST; absence treats sale as domestic, triggering state tax and credit consequences.
For SEZ supplies, sellers issue ARE-1 for intra-State deliveries, certified by SEZ Customs and returned within 45 days; for inter-State supplies the SEZ buyer issues Form I, which, when produced, exempts the transaction from CST. Absence of Form I results in treatment as a sale for home consumption, full State tax/CST becoming payable (recoverable from buyer) and potential disallowance or impact on VAT input tax credit. No specific CST-rule time limit exists for Form I; it should be produced by assessment or audit completion.