E1/E2 transaction

[Asked by Guest]

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

AI Summary

Sale in transit exemption: subsequent interstate resale during movement is exempt from central sales tax when covered by transit form.
Under the sale in transit principle, a resale effected during interstate movement is exempt from central sales tax when covered by the prescribed inter state transit documentation; the subsequent seller (first buyer B) will not charge CST, preserving single point taxation at the first sale. The discussion records an unresolved practical question whether the consignee should issue the purchaser's declaration form on the original manufacturer's invoice value or the intermediary's onward invoice value.