Dear Sir,
We are manufacturing auto parts and sale to maruti, Honda Scooter, Hero Moto. we are using plastic bin for dispatch the goods as a packing material.
Now my query is can we purchase plastic bin @2% cst paid & can we issue c form to our supplier.
Some person are saying to us this is not use in manufacturing purpose so you can't issue c form. if you are using then you are miss using c form.
Form C applicability: packing materials qualify for concessional CST when essential for transport and properly substantiated in orders. Packing materials essential for enabling movement of goods may be purchased under concessional CST by issuing Form C, provided the buyer substantiates the necessity for transport. Buyers should state packing requirements in purchase orders and ensure the specific packing items are identified on the CST certificate and supplier documentation to support concessional treatment. (AI Summary)