Chargiability of CST against C form

[chaganti srinivas]

We are dealer in Hyderabad (AP), we got order in Karnataka state, We purchase material in Karnataka, bill will be in the name of Hyderabad address and material will be delivered at Karnataka. Can supplier in karnataka charge 2% CST against C form.

[Mukesh Kumar]

You are advised to refer the discussion of Issue Id = 998

[Madhukar N Hiregange]

The movement of goods within the state of karnataka are only liable for K-VAT and not for CST. Only when the sale occassions the inter state movement will CST be applicable.

AI Summary

Inter state movement: CST applies only when goods cross state borders; intra state deliveries remain subject to state VAT.
Where goods are physically delivered within the supplier's state, the transaction is an intra state supply subject to State VAT; CST applies only when the sale occasions actual inter state movement of goods, and C form usage pertains to genuine inter state sales rather than transactions remaining within the same state despite out of state billing.