We are raising our sales invoice as dealer from Mumbai wherein Goods movement within Delhi .
In short, We buy the goods from Delhi and sale it to Delhi Customer without bringing to Mumbai. Our Delhi vendor (Manufacture) raised invoice showing our name as buyer and our customer name as consignee and charged CST @2% against Form 'C'.
In our side we raised sales Invoice to our customer who is situated in Delhi and charged CST @2% against Form 'C'.
Please advice us whether this procedure is valid under CST Act.
CST Act Clarification: No Interstate Sale if Goods Don't Move Out of State, Section 3(a) Explained A query was raised regarding the validity of a sales procedure under the CST Act, where a dealer in Mumbai buys goods from a Delhi vendor and sells them to a customer in Delhi without the goods being moved to Mumbai. The vendor invoices the dealer, showing the dealer as the buyer and the customer as the consignee, charging CST at 2% against Form 'C'. The dealer also charges CST at 2% in their sales invoice to the customer. The response clarified that since the goods do not move out of state, this cannot be considered an interstate sale under Section 3(a) of the CST Act. (AI Summary)
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