TaxTMI 
TaxTMI 
If, under an agreement, the Purchasing Dealer has failed to issue FORM C to the Selling Dealer what remedies lie with the Selling Dealer under Law? And can the Selling Dealer seek directions for issuance of FORM C from the Purchasing Dealer? Please provide any case law on the same.
Non Issuance of FORM C
03 Mar 2025 
5 Replies 
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Non-issuance of Form C raises seller tax liability and permits recovery from buyer plus recourse to tax authorities.
Non issuance of Form C removes the seller's entitlement to concessional inter state tax treatment, exposing the seller to higher tax, interest and penalties. The seller should issue a debit note for the tax differential and may pursue contractual recovery from the purchaser, approach tax authorities to seek acceptance or rectification of belated Form C and request reassessment where appropriate. Courts seldom order a purchaser to issue Form C, but belated or defective declarations can be accepted or rectified to permit reassessment if the inter state character of the sale and seller's registration are established. (AI Summary)
Non issuance of Form C removes the seller's entitlement to concessional inter state tax treatment, exposing the seller to higher tax, interest and penalties. The seller should issue a debit note for the tax differential and may pursue contractual recovery from the purchaser, approach tax authorities to seek acceptance or rectification of belated Form C and request reassessment where appropriate. Courts seldom order a purchaser to issue Form C, but belated or defective declarations can be accepted or rectified to permit reassessment if the inter state character of the sale and seller's registration are established. (AI Summary)