Applicability of CST or VAT

[V K]

BUYER & SELLER BOTH ARE IN HARYANA STATE, BUT THE MATERIAL IS BEING CONSIGNED TO MAHARASHTRA STATE. WE HAVE RAISED THE INVOICE UNDER E-1 SALE AGAINST C-FORM DUE . NOW BUYER IS DENYING TO ISSUE C-FORM, SAYING THAT INVOICE SHOULD HAVE BEEN RAISED ON VAT, AS THE BOTH ( SELLER & BUYER) ARE IN THE SAME STATE. ABOUT DELIVERY OF THE MATERIAL HE SAYS THAT THE DELIVERY CAN BE TAKEN ANY WHERE. IT DOES NOT ATTRACT THE SALES TAX. PLS CLARIFY , WHETHER CST OR VAT TOBE CHARGED.

[Subhash Majumdar]

No this case need not to be charge any CST/VAT only seller can charge entry tax from the buyer if goods are not exempt in said state.

[Mukesh Kumar]

I think, where the movement of the goods are from one state to another and the buyer is a registered dealer, he can issue form C to the seller. The stand of buyer at this stage, specifically when he was supposed to issue form C at the time of initiation of sale, is wrong.

AI Summary

Inter-state movement permits buyer to issue C-form and attract CST under applicable rules; refusal is incorrect. Where goods are moved from one state to another and the buyer is a registered dealer, the buyer may issue a C-form, enabling application of CST; a post sale refusal to issue the form is inconsistent with that position. Alternatively, one advisory reply indicates that neither CST nor VAT need be charged on the presented facts and that the seller may charge entry tax if goods are not exempt in the destination state.