ISSUE OF H FORM

[Asked by Guest]

Dear Sir,

Incase of export, Please clarify why we cannot issue Form H to sub vendors (i.e. Our vendors vendor).

Regards,

[Mahir S]

Only Penultimate Sale or Purchase appears to be exempted against Form H and not earlier Sale/Purchase.

[CSSANJAY MALHOTRA]

In addition to Mr. Mahir views, Please note that FORM-H is issued by the Exporter of goods to Manufacturer for exemption from payment of sales tax / vat / cst undertaking the purchased goods are meant for export.

Hence, not applicable for sub-vendors as their sales shall be treated as local sales and subject to vat.

AI Summary

Form H issuance limited to penultimate sale: exporters may issue to immediate manufacturers for tax exemption, not to sub-vendors.
Issuance of Form H is confined to the penultimate sale: the exporter issues Form H to the manufacturer as the immediate purchaser to secure exemption from sales tax/VAT/CST for goods meant for export. Earlier upstream suppliers or sub-vendors are not covered by this Form H mechanism; their sales are treated as local taxable supplies and remain subject to VAT.