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

Concessional CST purchase: packing containers may qualify for Form C when used as secondary packing material. Plastic bins used as reusable containers or secondary packing for finished goods qualify, under Section 8(3) of the CST framework, as items for which concessional purchase via Form C may be obtained, provided the CST registration and certificate description include such packing materials.