6 (2) Sales

[brij singh]

purchase form mumbai ₹ 358000 But goods Despatch from bangalor to kolkata ₹ 298000 which form given muimbai ₹ 358000

AI Summary

Understanding CST Exemption: Sales During Interstate Goods Movement Under Section 6(2) of CST Act as E-I Transactions A query was raised about a sales transaction involving VAT and CST, where goods were purchased in Mumbai but dispatched from Bangalore to Kolkata. The first response clarified that taxability under Central Sales Tax depends on the material movement, suggesting it may be a 'bill to ship to' transaction. The second response explained that sales occurring during interstate goods movement are exempt under Section 6(2) of the CST Act, known as E-I transactions or sales in transit. This exemption applies when goods are transferred by endorsement or delivery of title documents.