Ei & eii forms

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

07 March 2015 01.) My Firm SFC(Delhi)
Purchase form SBPL (U.P)
SALE to SRD ( Tamilnadu )

02.) how i receive benefit in c.s.t
by using EI & EII forms

03.) and plz tell who issue EI who issue EII and who issue C form

04.) currently i purchase by 'c' form but 2 % c.s.t. will not be input claim-able. and sale with 2 % cst so total tax gone to department 2%+ 2% 4 %

Querist : Anonymous

Querist : Anonymous (Querist)

08 March 2015 01.) My Firm SFC(Delhi)
I m Purchase form SBPL (U.P)
and SALE to SRD ( Tamilnadu )

02.) how i receive input benefit in c.s.t
by using EI & EII forms

03.) and plz tell who issue EI who issue EII and who issue C form

04.) currently i purchase by 'c' form but 2 % c.s.t. will not be input claim-able. and sale with 2 % cst so total tax gone to department 2%+ 2% 4 %

Asha Kanta Sharma online

Asha Kanta Sharma online

(Expert)
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21 July 2024 It seems you're dealing with inter-state transactions and issues related to Central Sales Tax (CST) forms in India. Let me address your queries one by one:

### 1. Benefit in CST using EI (E-I) and EII (E-II) Forms

- **E-I Form (Form EI):** This form is used for claiming concessional or nil rate of CST on goods sold from one state to another. In your case, when you sell goods from Delhi (SFC) to Tamil Nadu (SRD), if the goods qualify under CST rules for concessional rate or exemption, you can issue an E-I form to claim this benefit.

- **E-II Form (Form EII):** This form is used for claiming tax refund on goods purchased interstate where CST has been paid. If you purchase goods from Uttar Pradesh (SBPL) and pay CST, you can obtain an E-II form from the seller (SBPL) to claim a refund of CST paid while making your interstate sales.

### 2. Issuance of EI, EII, and C Forms

- **E-I Form (EI):** Issued by the selling dealer (in this case, you, SFC in Delhi) to the purchasing dealer (SRD in Tamil Nadu) for claiming concessional or nil rate of CST on interstate sales.

- **E-II Form (EII):** Issued by the purchasing dealer (SBPL in Uttar Pradesh) to the selling dealer (you, SFC in Delhi) for claiming refund of CST paid on interstate purchases.

- **C Form:** This form is used for interstate purchases where goods are purchased at concessional rates of CST. The purchasing dealer (you, SFC in Delhi) issues the C Form to the selling dealer (SBPL in Uttar Pradesh) to procure goods at a concessional rate of CST (typically 2%).

### 3. Input Tax Credit (ITC) Issue

You mentioned that currently, you purchase goods using the C Form, but you cannot claim 2% CST as input credit. It's important to note that CST paid using the C Form is generally not eligible for input tax credit under GST law. CST is a central tax and not part of the GST framework. Therefore, the CST paid using the C Form is a cost and cannot be offset against your output CST liability.

### Summary:

- Use **E-I Form (EI)** when selling goods from Delhi to Tamil Nadu to claim concessional or nil CST rates.
- Obtain **E-II Form (EII)** when purchasing goods from Uttar Pradesh to claim refund of CST paid.
- **C Form** is used for concessional CST rates on interstate purchases, but CST paid using the C Form cannot be claimed as input tax credit.

Ensure compliance with state-specific rules regarding CST forms as they can vary. For detailed guidance and current procedures, it's advisable to consult with a tax consultant or the respective state VAT department.

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