What is E1 And E2 Transaction in case of CST

[Mayank Raj Srivastava]

What is E1 And E2 Transaction in case of CST exemption.

AI Summary

Clarification on CST Exemption: Buyer's Identity and Payment Details Do Not Affect E1 Sale Classification Under CST. The forum discusses E1 and E2 transactions under the Central Sales Tax (CST) exemption. A participant queries whether a purchasing dealer must issue an invoice to the consignee when the invoice is issued by a seller in Maharashtra to a buyer in Karnataka, with the consignee also in Karnataka. Responses clarify that the Supreme Court and Madras High Court have ruled that knowing the ultimate buyer's identity before goods movement does not impede CST exemption. It is noted that the buyer's identity on the invoice and payment details do not affect the transaction's classification as an E1 sale.