What is E1 Sale? under Section 6(2) of CST act.

[Saravanan Periyasamy]

What is E1 Sale? under Section 6(2) of CST act.

[YAGAY andSUN]

Dear Saravanan,

When goods are further sold by an intermediate buyer without taking the physical delivery to a third buyer in other State, then it is said that it is transit sale or E-1 Sale.

It can be done either by endorsement of documents of title or by conducting Bill to Ship to transaction.

Regards,

SameerMalhotra - Consultant

YAGAY and SUN

(Management, Business and Indirect Tax Consultants)

AI Summary

E-1 sale: transit sale where an intermediary resells without taking delivery, using document endorsement or bill-to-ship. E-1 sale is a form of transit sale where an intermediate buyer resells goods to a third-party buyer in another State without taking physical delivery, effected by endorsement of documents of title or by a Bill-to-Ship arrangement preserving uninterrupted interstate movement to the ultimate buyer.