C-Form use against purchase of plastic Bins

[Guest]

Dear Experts,

We have purchase some plastic bins for finished goods storage and sale to OEM's Customer. And after receive our finished goods customer return our bins and we will use again for next dispatch.

Can we purchase this types of bins against form 'C'. Can we issue C- Form for supplier ?

[Ganeshan Kalyani]

Sir plastic beans is playing an essential roll in your business. You should get the form. For this you will have to amend your CST Certificate to include this item. Only then you will be able to apply for form c. Thanks.

[Guest]

Dear Ganeshan Kalyani Ji,

We are not selling plastic bins. we are using plastic bins only for packing purpose during transit & storage, then how can we amend our cst registration?

[Ganeshan Kalyani]

Section 8 (3) of CST Act provides the purpose for which the goods can be purchased at a concessional rate of tax. One amongst is :-

vi. Container or other materials used for packing of any goods mentioned in para (i) or (iv) above ( i.e. Secondary packing materials)

On the basis of the above provision I am of the view that Form C can be issued in your case. Thanks.

AI Summary

Business Seeks Concessional Tax on Plastic Bins for Storage Under Form C, Citing Section 8(3) of CST Act. A business inquired about purchasing plastic bins for storage and transport of finished goods using Form C, which allows for concessional tax rates. An expert advised that the bins play a crucial role in the business, suggesting that the CST Certificate should be amended to include these items to apply for Form C. Despite not selling the bins, the expert referenced Section 8(3) of the CST Act, which allows for purchasing packing materials at a concessional rate, indicating that Form C could be applicable in this case.