1. Can the product bought from Delhi (by issuing C form at 2 percent rate) by our company based in Tamilnadu be sold to buyer company also in Delhi (Not having CST number)? Is such a sale (wherein originating seller and final buyer are in same state) permitted under CST laws?
2. What is the rate of tax (CST) applicable to the Purchase and Sales Invoices to / by our company in such a sale?
Concessional CST Rate Inapplicable for Intra-State Sales; Full Rate Applies Without CST Registration Under C Form Rules. A company in Tamilnadu queries about selling goods bought from Delhi, using a C Form at a 2% rate, to another company in Delhi that lacks a CST number. The concern is whether such transactions are permissible under CST laws and the applicable tax rate. An expert clarifies that for a concessional CST rate, goods must move between states; otherwise, the full tax rate applies. Further, a buyer without CST registration cannot purchase goods at the concessional rate with a C Form, necessitating the full CST rate on invoices. (AI Summary)
TaxTMI 
TaxTMI 
