Raw Material As such inter Unit Dispatch

[pareshbhai vasava]

Dear Sir,

We have purchased raw material from regular vendor.

Said material as such we want to transfer our inter unit.

If we generate invoice what about 2% CST is applicable to us ?

What is rules As such Chemical Material ?

your quick reply is highly appreciated.

Thanks & Regards

Paresh Vasava

AI Summary

Inter-unit transfer of inputs: treat as branch transfer, pay duty or reverse CENVAT credit unless LTU and Form F apply.
Inter-unit transfers of excisable raw materials must be supported by appropriate documents: use a challan for intra-owner movement or an excise invoice and either pay duty or reverse proportionate CENVAT credit unless covered by the LTU scheme. Where units are in different States, treat the movement as a branch transfer for sales tax; CST is exempt if the receiving unit furnishes Form F. Maintain distinct registrations and documentary proof to establish non-sale character and entitlement to exemptions and credit treatment.