E1 & E2 Transaction

[Asked by Guest]

Dear Seniors,

A is the Material Manufacturer in Jabbalpur CG

B is the Dealer in Noida, UP

C Customor/Consignee Shajanpur, UP

My Question is:

Is the below transaction "Sale In Transit / E1 Transaction" or not ?.

B purchases the material from A under CST biling and B prepare a Invoice without any tax amount to C.

the material A Delivers in the name of B as a buyer & directly send to C and B Endorse the L.R.in the name of C. so, material collects by C

and A issues "E1" form to B and collects Form"C" from B and B collect Form "C" from C & issues E2 Form to C

Please guide me.

AI Summary

Sale in transit requires transit documentation and invoices reflecting supplier tax and consignee details for inter state movement.
Sale in transit occurs where a manufacturer invoices a dealer as buyer while consigning goods directly to a consignee in another State; such inter state movement is covered by the CST Act provision for subsequent sales and requires transit documentation (E1/E2) with the seller naming buyer and consignee on invoice. If destination ends at the consignee's State no downstream form is needed; otherwise the intermediary must issue the downstream form. The intermediary should invoice the consignee for manufacturer value plus margin, showing the manufacturer's inter state tax, while practical questions remain about Form C computation and tax treatment of the dealer's margin when dealer and consignee are in the same State.