Sale in transit / CST without C -Form

[ashok sharma]

We are a delhi based trader (A) deals into Nonwoven Fabric.

We purchase Nonwoven Fabric from Gujarat (B) and they chared 0% CST becasue CST is exempted on Nonwoven Fabric in Gujarat. No C -Form is required by them.

I want to dispatch the material directly Gujarat to Mumbai based customer (C).

Gujarat based company(B) will raise the invoice in favor of my firm (A) and consignee address will be Mumbai based customer (C).

We (A) will send our invoice directly to customer with 5% CST without C form.

Our questions are -

1. Can we mark consignment sale word on my invoice in place of transporter name and LR ? 

2. There is requiremnt of E1& E2 form (We are not paying any tax to Gujarat based company (B) due to exemption but i am charging CST to Mumbai based customer)

3. Is it called Transit sale?

Please help.

Regards,

Ashok

AI Summary

Trader Seeks Clarification on CST Charges, Transit Sale Status, and Invoice Marking for Fabric Dispatch A Delhi-based trader (A) dealing in nonwoven fabric purchases the material from a Gujarat supplier (B) with 0% CST due to an exemption in Gujarat. The trader intends to dispatch the fabric directly to a customer in Mumbai (C). The Gujarat supplier will invoice the Delhi trader, who will then invoice the Mumbai customer with a 5% CST without a C form. The trader seeks clarification on marking the consignment sale on the invoice, the necessity of E1 and E2 forms, and whether this transaction qualifies as a transit sale. A respondent questions the rationale behind charging 5% CST during a transit sale when the initial purchase is exempt.