Regarding DS2 & Purchase against C-Form

[PARVEEN ARORA]

Delhi dealer purchases the material from Punjab dealer against C-Form & give instruction to the Punjab dealer to directly dispatch the material to the consumer in other states except Delhi. Physical material not entered in Delhi.

Is Delhi dealer liable to file DS2?

Is the purchase against C-form is allowable or not in D-Vat Act?

AI Summary

Sale-in-transit affects filing obligations and C-Form permissibility; goods not entering the state generally remove filing obligation.
Transactions where an out-of-state seller dispatches goods directly to an out-of-state end-customer but invoices a Delhi buyer as bill-to are characterised either as sale-in-transit-permitting purchases against Form C and excusing the Delhi dealer from filing the state purchase return because goods do not enter the state-or as planned factory-gate sales, which appellate decisions have sometimes treated as not falling within sale-in-transit; resolution depends on delivery facts, LR endorsement, case law and assessing officer discretion.