Applicability of 'H' Form in sale of goods

[d.v. gupta]

we are selling goods to a delhi dealer. we are also registered in delhi. the purchasing dealer is purchasing goods to export. they want to purchase against 'H' form. whether it is legal to sale goods to delhi dealer against 'H' form.

AI Summary

'H' Form Valid for Export Sales; Zero-Rated Exports Allow VAT Offset Without Reversing Input Tax Credit A discussion on the applicability of 'H' Form in the sale of goods involves a query about selling goods to a Delhi dealer for export purposes using 'H' Form. Several participants confirm that it is legal to sell goods against 'H' Form for exports, as export sales differ from interstate sales. A participant inquires about the VAT implications for the seller, questioning whether VAT paid at purchase can be credited against other sales. It is clarified that there is no need to reverse the Input Tax Credit for export sales, which are zero-rated, allowing the seller to offset VAT liability from other sales.