C Form and applicability rules

[Asked by Guest]

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?

AI Summary

Concessional CST entitlement requires physical inter-state movement and buyer CST registration; otherwise full CST must be charged.
The concessional CST rate against C Forms requires physical inter state movement of goods; absent such movement the concessional rate cannot be claimed. A buyer without CST registration is ineligible to purchase under C Form, and the seller must charge the full CST rate on the invoice.