Regarding c forms against purchase of its like tvs, acs etc

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Querist : Anonymous

Querist : Anonymous (Querist)

03 October 2013 I am from Goa working as accountant in pvt ltd Company.
MY company constructed a five stared hotel in Goa with around 80 Rooms. I Want to purchase TVs, ACs, Furniture, Refrigerator for use of Tourist and hotel Users Against form c.If there is NO above such items in starred Categories hotel then no buddy can Attract to our Hotel. My question is whether Form C can be issued for purchase the said above Material for Concession Rate. I want to purchase from other state like Maharashtra and Karnataka. it is interstate purchase.

Querist : Anonymous

Querist : Anonymous (Querist)

04 October 2013 I am from Goa working as accountant in pvt ltd Company. MY company constructed a five stared hotel in Goa with around 80 Rooms. I Want to purchase TVs, ACs, Furniture, Refrigerator for use of Tourist and hotel Users Against form c. If such above items are not in the Hotel then No buddy can attract our Starred Category. When Costumer are using rooms it means it is a Deemed sale. Hotel owner is giving right of Transfer to make use. A Hotel owner pay the luxury Tax, Entertainment Tax. My question is whether Form C can be issued for purchase the said above Material for Concession Rate. I want to purchase from other state like Maharashtra and Karnataka. it is interstate purchase.

Aashok Kumar Sharma

Aashok Kumar Sharma (Expert)
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20 July 2025 Thanks for sharing your detailed query about Form C and interstate purchases for your 5-star hotel in Goa. Let me clarify the situation for you:

Key Points to Understand:
What is Form C?
Form C is issued under the Central Sales Tax Act (CST Act) to enable buyers to purchase goods at a concessional rate of CST (usually 2%) instead of the full state VAT rate.
It is used for interstate purchases of goods intended for resale or for use in manufacturing or processing.
Applicability for Hotels:
Your hotel is providing services (accommodation) to tourists, and charges luxury tax and entertainment tax accordingly.
Goods like TVs, ACs, furniture, refrigerators are capital goods or goods used for providing the service.
Can Form C be issued for such purchases?
Form C is generally NOT issued for capital goods or goods used for providing services. It is mainly for goods intended for resale or for manufacturing.
Hotels cannot issue Form C to purchase capital goods at concessional CST rate unless these goods are specifically exempted or covered under any special notification.
Usually, hotels pay VAT at applicable rates on capital goods purchased interstate, without concession via Form C.
Interstate Purchase from Maharashtra and Karnataka:
Since you are purchasing from other states, the seller will charge CST.
Without Form C, CST is usually full rate (e.g., 5%).
If Form C is not applicable, you cannot claim concessional rate and have to pay full CST.
Luxury Tax & Deemed Sale:
Your mention of deemed sale and luxury tax relates to the service aspect of your hotel business, which is separate from purchase tax.
Paying luxury tax doesn’t automatically qualify you to get concessional CST on capital goods purchases.
Summary:
Point Likely Position
Issuance of Form C for TVs, AC, Furniture, etc. Not applicable — generally no Form C on capital goods for hotels
Can hotel get concessional CST on such purchases? No, pay applicable CST/VAT on capital goods
Luxury tax payment impact on Form C eligibility No impact on Form C issuance
What you can do:
Confirm with your local VAT/CST department for any specific exemptions for 5-star hotels.
Consider Input Tax Credit (ITC) if applicable, depending on your state's VAT laws.
Maintain all purchase documentation carefully.

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