OMS SALE WITHIN THE STATE

[SURYAKANT MITHBAVKAR]

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.

[YAGAY andSUN]

First movement of goods are not out of the State to other State. Therefore, cannot be treated as interstate sale. Please check the Section 3 (a) of the CST Act read with Section 6 ibid.

AI Summary

Interstate sale treatment denied when goods movement remains within the same state, affecting CST applicability. Because the first movement of the goods did not occur out of the State, the arrangement cannot be characterised as an interstate sale for purposes of the Central Sales Tax regime; see Section 3(a) of the CST Act read with Section 6 for determination.