27 October 2009
Certificate in form H - Sale during course of export is exempt from CST. As per section 5(3) of CST Act, penultimate sale is also deemed to be in course of export and is exempt from CST. Dealer actually exporting the goods has proof of export like customs documents, bank certificate, airway bill/bill of lading, shipping bill etc. However, the penultimate seller does not have any direct evidence to prove that his sale is exempt from tax. In such cases, the actual exporter has to issue a certificate to the penultimate seller in form H. The blank â€˜Hâ€™ forms are to be obtained from sales tax authority by the final exporter.
Form H is for export outside India and not for Interstate Sale. Foe interstate sale C form to be obtained for reduced rate of 2 %.
Purchase of goods will attract VAT in your state. Form -H will only enable you to not charge CST on your sale price.