C, E1 & E2 Transaction

[Pranali Majalkar]

We have purchase material from A in Maharashtra & directly shift to C in Gujarat. Material not received in our office Maharashtra.

Please advised how to issue C form to A in Maharashtra.

[Ganeshan Kalyani]

In my view since you are the first purchaser and C is the second purchaser. In this case you will have to issue E1 to A and collect form C from A in Gujarat.

[Pranali Majalkar]

We are First Purchaser in Maharashtra & We sell the material in Gujarat but we first purchaser purchase material in Maharashtra against 2% CST. Please advise us which form we issue to our seller in Maharashtra.

[YAGAY and SUN]

Please check the Section 3 (a) & (b) read with Explanation I and II. Further, read Section 6 (2) in this connection. You will find out that above transactions would not fall under Interstate Sales. Hence, C form, E1 and EII would not be applicable on this transaction since the first sale is in the State of Maharashtra.

Dig deeper to find out the answer.

[Ashok Aggarwal]

I agree with Yagay & Sun. Since first purchase is within Maharashtra, the question of C-Form or E-1 would not arise which comes into play when first sale itself is inter-state sale.

[Pranali Majalkar]

We are A in Maharashtra Purchase goods from B in Maharashtra against 2% CST. A sells goods to C in Gujarat against 2% CST. We dispatch the material to C directly from B to C.In this case which form we given to A & Which form we collect from C.

AI Summary

C form applicability is limited where the first sale is intrastate; inter state form obligations do not arise.
Applicability of C form and E1 depends on whether the first sale is interstate. If the first sale occurs within the same State, the transaction is treated as intrastate for form purposes and C form and E1 obligations do not arise, notwithstanding direct dispatch of goods from the original seller to the out of State purchaser.