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

Buyer Refuses C-Form for E-1 Sale, Citing VAT Applicability; Dispute Over Interstate Goods Movement and Tax Obligations A seller in Haryana consigned goods to Maharashtra, raising an invoice under E-1 sale against a C-form. The buyer, also in Haryana, refused to issue the C-form, arguing that VAT should apply since both parties are in the same state, and delivery location doesn't affect sales tax. One respondent stated that no CST/VAT should be charged, only entry tax if applicable. Another respondent argued that since the goods moved between states and the buyer is a registered dealer, the buyer should issue the C-form, and their refusal is incorrect.