E1 transaction

[Guest]

I am purchasing material from a manufacturer in Maharashtra and selling it to a customer in Gujarat, how do I use E1 transaction?

AI Summary

Guidance on E1 Transactions: Comply with CST Act Sections 3(a), 3(b), 6(2) for Interstate Sales and Tax Benefits. An individual inquires about executing an E1 transaction while purchasing materials from a manufacturer in Maharashtra and selling them to a customer in Gujarat. Respondents advise on the legal framework, emphasizing the need to comply with Sections 3(a), 3(b), and 6(2) of the CST Act. The process involves endorsing the lorry receipt to the Gujarat customer without physically receiving the goods, thereby facilitating a sale in transit to avoid multiple taxation. The exchange of statutory forms, such as C-forms and E1 forms, is crucial for compliance. The transaction must be interstate to qualify as an E1 sale.