Suppose manufacturer A sells to trader B (under E1 transaction) with C as ultimate consignee.
A raises invoice as follows:
Basic price = INR 100
ED = INR 12
CST = INR 2
Total = INR 114
B sells it to C under E1 transaction and raises invoice as follows:
Basic price = INR 150
ED (reimbursement) = INR 12
CST = ??
Can you pl help in finding out CST to be charged under question mark (??) above
Clarifying CST Exemption in E1 Transactions: B Should Not Charge CST per Section 6(2); C Form Issue Amount Questioned. (2) A discussion on a forum revolves around the calculation of Central Sales Tax (CST) in an E1 transaction involving a manufacturer A, trader B, and ultimate consignee C. Manufacturer A sells to B, who then sells to C. The query seeks clarity on the CST to be charged by B. Replies indicate that under the Central Sales Tax Act, subsequent sales during transit are exempt from CST, as per Section 6(2). Therefore, B should not charge CST. Additionally, there is a query about the amount on which C should issue the C form to B, with options being INR 114 or INR 150. (AI Summary)
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