Amendment to CST Act

[saket s]

Dear Experts,

This is in respect to amendment to CST Act vide the Taxation Act, 2017.

Consequent to modification of CST Act, mainly the definition of ‘Goods’ (restricting it to only 5 products which are out of GST due to upcoming GST law), there will be impact on Oil Industry as well as Dealers who are purchasing Goods from Oil Companies. They may not be able to obtain & provide C form to Oil companies, for example, Power Generation Companies, whether they will be able to issue C forms to Oil Companies for their purchase of HSD (considering section 8 (3) and definition of Dealer & Goods). If yes, then whether they would be required to continue with CST registration & Returns for declaring their inter-state purchase against C form for Non-GST Goods.

Kindly share your opinion.

Saket

[Ganeshan Kalyani]

There is no clarity on this point in the GST law. It is clear that present taxation will apply on the products not subsumed under GST, one of the item is oil. Statutory forms will be abolished under GST. But since the current tax on oil will continue the government should allow the assessee to procure the goods against forms for these products. Representations can be made in this regard.

AI Summary

C-form issuance: uncertainty whether buyers can issue C-forms for non-GST oil purchases and related CST obligations. The CST amendment narrows 'goods' to items outside GST-including oil-prompting uncertainty whether purchasers can issue and use C forms for inter state purchases of HSD and whether CST registration and returns must continue; commentary recommends that authorities allow procurement against C forms for non GST goods and that stakeholders seek formal clarification on transitional CST obligations.