purchases against Form H

[Arun Aggarwal]

Sir

I am a munufacturer of Jewellery in Delhi

Can I issue H form for the purchase of jewellery from other state and after the purchase I do some studding and branding and export the same out of the country as studded jewellery?

[Ganeshan Kalyani]

One of the condition for purchasing goods with an intent to export is that the specification of the goods purchased from vendor should match with the requirement of the foreign buyer. then only it will mean that purchase was for ultimate export. since you are to carry out some activity to the goods after purchasing it, the condition in section 5 (3) of CST Act does not satisfy .

[Arun Aggarwal]

Sir, Jewellery remained jewellery with the same packing, then y cant I issue H form

[Ganeshan Kalyani]

Whether your purchase of goods from vendore is after getting order from foreign buyer. And whether your purchase is as per the specification of the goods requestes by foreign buyer.

[Arun Aggarwal]

Sir

Yes my purchases from the another manufacurer from different state would be after getting the export order, but I will be studing the jewellery after the purchases! But the shipping bill will be of Jewellery only!

[Ganeshan Kalyani]

Then the condition satisfies and you can carry the transaction against Form H.

AI Summary

Form H eligibility depends on purchases made to buyer specifications for export, even with subsequent processing.
Eligibility to purchase against Form H hinges on whether the goods were bought for ultimate export and matched the foreign buyer's specifications at the time of purchase; purchases made after receiving an export order and in conformity with buyer specifications remain export linked even if the purchaser undertakes subsequent studding or branding, and such transactions satisfy the compliance condition for treatment against Form H.