Requirement of C Form submission of Tax Free Goods

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This query is : Resolved

Ashish Vishnoi (Querist)

26 January 2009 Dear Friends,

We are manufacturing & selling a tax free goods, but due to non clarification of Sale Tax Department we are depositing CST Tax against C Form. Now department had clarified that our product is tax free and we stopped charging CST tax. During the last year we had deposited full tax against C form. Can we have to also submit C forms for previous Year Assessment? When our product is tax free, Can we claim refund of Previous year Tax? If yes, than please provide me any case judgement decision. My email ID is ashishvishnoi@sify.com

CA. B.SRINIVASULU

CA. B.SRINIVASULU (Expert)

26 January 2009 As per the sales tax act you should not charge more than what is collectiable under law. If you have collected then it becomes the government money and therefore it has to be deposited to the government account. You cannot claim from department because now. But in future you can charge zero tax.

C A GROUP COACHING

C A GROUP COACHING (Expert)

26 January 2009 Upto the extent what law states the opinion given by CA B Srinivasulu is correct, but within the frame of law taking interpretation to our favour there is a way of claiming the tax paid back

It being a detailed procedure, incase you are interested you can call me & I will explain it to you / your accountant

Chandrakant Ambani
Mumbai
9819408963
9821240674

Ashish Vishnoi

Ashish Vishnoi (Querist)

28 January 2009 Dear Sir,

My second query is that when our product is tax free,Can we have to also submit C forms for previous year?

Aashok Kumar Sharma online

Aashok Kumar Sharma

(Expert)

21 July 2025 Do you need to submit C Forms for previous years when your goods are tax-free?
C Form is a declaration from the buyer (usually a registered dealer in another state) to avail concessional CST rate (usually 2%) on interstate sales.

If your goods are tax-free by law, no CST is chargeable on such sales.

Since you were charging and depositing CST earlier, C Forms were required for those interstate sales to avail concessional tax rates.

For previous years’ sales where CST was charged and paid, you should submit the C Forms as per the legal requirement of that period.

For current/future sales (tax-free goods), no CST and hence no C Forms are required.

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