cst adjustment if buyer fail to provide the c form

[krishan sharma]

dear sir

if a cstomer made inter state sale from delhi to haryana and delhi customer sale against c- form on the request by haryana customer and charge 2% cst but delhi fund after sale the haryana customer no register in sale tax and he also not eligible toobtaine c form from department in the case pls suggest the needful infofmation for safety by law

[YAGAY andSUN]

Dear Krishan Sharma,

You can raise a supplimetary Invoice or a Debit Note for differential tax.  Please note, Assessing authority will also impose penalty and levy interest for non submission of C form within prescribed time.  Further, it seems that your customer had suppressed the facts and acted on these suppressed facts that he was entitled to purchase the goods on concessional rate of tax under CST Act.  Under CST Act this type of activities are defined as offence.  You can bring this issue to the knowledge of the HVAT Authorities if your customer is not willing to pay the differtial tax along with interest and penalty, if levied/imposed by the HVAT Department.  But first of all, please try to sort this matter mutually and harmoniously.

Best Regards,

Pradeep Khatri

AI Summary

CST liability: invalid or absent C forms require supplementary tax recovery and may attract penalty and interest. Interstate sale charged at concessional CST on a buyer's C form creates CST liability if the buyer is unregistered or ineligible; the seller should raise a supplementary invoice or debit note to recover the differential tax. Assessing authorities may levy interest and penalty for non submission of C forms, and transactions effected by suppression of facts can constitute offences under the CST framework. If the buyer refuses payment, the seller may notify HVAT authorities after attempting mutual settlement, preserving evidence of the buyer's representations.