CST invoiced matetrials- deliver within a state

[MUKUNTHARAJAN SUNDARAM]

DEar sir

Our factory is in Tamilnadu.When the buyer is in Gujarat and they are asking us to invoice the material with CST bill and the goods has to be supplied to their factory in Tamilnadu.

Whether it is possible to deliver the CST invoiced materials within Tamilnadu? Is It legaly correct?

We need clarification in this subject.

[Ganeshan Kalyani]

Sir, the movement of goods decides the nature of transaction. The movement is within the State hence it is local sales and not an interstate. Thanks.

AI Summary

Movement of goods determines transaction nature: intra state delivery is treated as a local sale, not an interstate sale. The applicable tax characterization turns on the movement of goods: where physical delivery occurs within the same State as the supplier, the transaction is to be treated as a local sale rather than an interstate sale, so issuing a CST invoice for goods delivered within the supplier's State is inconsistent with the movement and delivery facts.