Form `C' non-submission

[Asked by Guest]

Seller finds it difficult to collect c-form's within the time frame or before the Sales Tax Assessment complete. There are cases, even after completion of Sales Tax Assessment, the Buyer either not submitted the c-form or have not responded on making the remittance against balance differential taxable liability.

The problems being faced are:

1. Buyer apply for the Form C’s, after a follow up from the organization.

2. Buyer cannot be contacted due to the buyers being very old or contact details not available.

3. The Seller by error has done Form C sale to non registered dealers / buyers.

4. Buyer claiming no business with the Seller.

5. Buyer claiming sales tax Forms issued but not received by the Seller / lost in transit.

6. Buyer claiming service / product issues – due to which they will not release the Form C’s.

7. Buyer having no intention to issue Form C’s.

8. Further information required (PO, road permit etc) to issue the Form C’s.

9. In large organizations, the responsibility to issue the Form C is not defined, therefore the follow up cannot be conducted with the right person in the organization.

10. Buyer insist that C-form will be exchanged against E-1 form, whereas E-1 form is only issued after duly receipt of the original c-form.

Taking into consideration the above points, could you kindly suggest if there is a way out such as "CIBIL", wherein a banker after verifying the CIBIL Report the loan is passed to the requestee.

Regards

Sanjay Mukherjee

AI Summary

Form C non-submission risks exposure to full CST liability; strengthen internal controls and documentation to mitigate tax exposure.
Non-submission of Form C leaves the seller exposed to full CST liability when concessional treatment cannot be verified; common causes include delayed or uncooperative buyers, issuance errors, lost forms, and organisational responsibility gaps. Operational mitigations recommended are quarterly tracking and follow-up, assigning sales-team responsibility, securing documentation at sale, charging full CST if receipt is doubtful, documenting escalation procedures, and considering commercial safeguards subject to legal review.