Chargiability of CST

[PRADEEP KUMAR]

Refer-Issue ID = 1220 When Despatch of material within the state of Gujarat is a result of resale by the Chennai (Tamilnadu)buyer and the chennai buyer do not have any business place registered in the state of Gujarat,what is the Sales Tax to be Chargeable(Whether CST or G-Vat under Tax Invoice)

[Guest]

Here the question is when the sale should take place under the Central Sales Tax Act. and the answer is when the goods will move from one state to another state. Here the goods is delivered in the same state hence G-VAT will be charged. As buyer is not registered under the GVAT hence in his sales tax return he will show it under the head " Purchase out of state and sell out of state " col. in his sales tax retrun. in this case it will be treated as local delivery and if the value of goods will cross the exemption limit under the G-Vat Act chennai person have to get registred himself under the GVAT Act. ( It may be TEMP reg.)and sales tax department will insted him to get reg himself

[PRADEEP KUMAR]

Refer-Issue ID-1220 The delivery of material within the Gujarat state is as per instructions of the buyer having paid for the material from chennai and hence he is taking delivery of the material from our Gujarat Factory(FOR).What is the Legal status for the Manufacturer if it is charging CST against Form-C in the invoice?

[Guest]

The delivery of material within the Gujarat state is covered under the G_VAT Act because buyer have taken a delivery of the material from your Gujarat Factory(FOR).Hence you can't sell it against form C . Assessing officer will reject the same and include the same in loacl sale

AI Summary

Intra-state supply tax treatment: G-VAT applies where delivery occurs within state, CST not chargeable against Form C. Where delivery of goods is taken from the seller's Gujarat factory and there is no inter-state movement, the sale is governed by G-VAT rather than CST. Charging CST against Form C for such in-state deliveries is not appropriate; the assessing officer will treat the transaction as a local sale. A buyer without Gujarat registration must report the transaction under the 'purchase out of state and sell out of state' column and must obtain G-VAT registration if local supply exceeds exemption limits.