Sale of goods , inter state
This query is : Resolved
01 July 2012
Dear Sir,
How goods can sale goods to the person of another state, without VAT number , Eg: A small shopkeeper(waste material) who hav not VAT number, sale his waste material to the person of another state , than how the purchaser enter the goods in his state without seller's VAT number bill????
Is it possible ??
How goods can sale goods to the person of another state, without VAT number , Eg: A small shopkeeper(waste material) who hav not VAT number, sale his waste material to the person of another state , than how the purchaser enter the goods in his state without seller's VAT number bill????
Is it possible ??
02 July 2012
Small shopkeeper can sale goods to OMS Dealer.
He should sale goods without any TAX .
He should sale goods without any TAX .
02 July 2012
Dear Sir,
thanks for reply
wat is OMS ??
Plz tell me the procedure , how good can sale to another state without VAT,
eg: i hav VAT of 'A' state but i want to purchase a product from 'B' state but seller of 'B' state is a small shopker and he hav not any VAT etc... so plz tell me , how i get in the products in my state ....
Thanks
thanks for reply
wat is OMS ??
Plz tell me the procedure , how good can sale to another state without VAT,
eg: i hav VAT of 'A' state but i want to purchase a product from 'B' state but seller of 'B' state is a small shopker and he hav not any VAT etc... so plz tell me , how i get in the products in my state ....
Thanks
02 July 2012
OMS Means out of maharashtra state.
You can simply purchase from him. as he is small unregistered dealer he will not charge you any TAX. he will charge you product cost and freight if he is giving delivery.
you will consider it as URD purchase means purchase form unregistered dealer.
You can not take ant setoff as VAT/CST not charged
You can simply purchase from him. as he is small unregistered dealer he will not charge you any TAX. he will charge you product cost and freight if he is giving delivery.
you will consider it as URD purchase means purchase form unregistered dealer.
You can not take ant setoff as VAT/CST not charged
03 July 2012
Dear Sir,
As per my knowledge , purchase bill is valid with in a state. i cannot purchase the goods from another state and transfer in my home state .
As per my knowledge , purchase bill is valid with in a state. i cannot purchase the goods from another state and transfer in my home state .
03 July 2012
why you can not purchase from another state and bring it to your state, is there any provision
03 July 2012
Dear Sir,
As per my knowledge , without CST we cannot buy goods from another state....
I m from 'A' state and i have VAT/CST , but i want to purchase the goods from another state, 'B'state, but shopkeper of 'B'state have not any VAT/CST ect... so how it is posiblm here to purchase a goods without CST ...
As per my knowledge , without CST we cannot buy goods from another state....
I m from 'A' state and i have VAT/CST , but i want to purchase the goods from another state, 'B'state, but shopkeper of 'B'state have not any VAT/CST ect... so how it is posiblm here to purchase a goods without CST ...
22 July 2025
Here's a detailed explanation about interstate sale of goods from unregistered dealers (like small shopkeepers without VAT/CST):
---
### Can a small shopkeeper without VAT/CST sell goods interstate?
* **Legally, for interstate sales, CST (Central Sales Tax) applies**, and the seller must be registered for CST or GST (now GST replaced VAT/CST post-2017).
* **If the seller is unregistered (no VAT/CST), they are not authorized to collect CST** on interstate sales.
* So **technically, an unregistered dealer cannot legally sell goods interstate** because CST/GST registration is mandatory for interstate supplies exceeding threshold limits.
---
### What happens if a small unregistered dealer sells goods interstate?
* The buyer can **purchase goods but without CST charged**, so the invoice will be without tax.
* The buyer must treat such purchases as **from an unregistered dealer (URD)**.
* The buyer **cannot claim input tax credit (ITC)** on such purchases.
* The buyer must comply with **local state laws for entry tax or purchase tax**, if applicable.
---
### Practical scenario in your example:
* You (buyer in State A) want to purchase from a small shopkeeper in State B who has **no VAT/CST registration**.
* The shopkeeper sells the goods without CST.
* You get an invoice without CST.
* You receive goods in your state but **cannot claim CST credit**.
* This purchase is treated as a **non-taxable purchase from an unregistered dealer**.
* For your accounting and tax filings, treat this as a purchase without tax credit.
---
### Important notes:
* The **seller may be liable for penalty or notice** from tax authorities for making interstate sales without registration.
* The buyer should ensure proper documentation and disclose such purchases correctly in tax returns.
* Post GST (after July 2017), **all interstate supplies require GST registration and tax payment** if turnover exceeds threshold.
---
### Summary Table:
| Seller Status | Interstate Sale Allowed? | Tax Charged | Buyer Can Claim ITC? | Notes |
| --------------------------- | ------------------------ | ----------- | -------------------- | --------------------------------- |
| Registered dealer (CST/GST) | Yes | CST/GST | Yes | Normal interstate purchase |
| Unregistered small dealer | No (not legal) | No CST | No | Buyer treats as purchase from URD |
---
If you want, I can help draft a note for your client explaining this or prepare a checklist for interstate purchases compliance!
---
### Can a small shopkeeper without VAT/CST sell goods interstate?
* **Legally, for interstate sales, CST (Central Sales Tax) applies**, and the seller must be registered for CST or GST (now GST replaced VAT/CST post-2017).
* **If the seller is unregistered (no VAT/CST), they are not authorized to collect CST** on interstate sales.
* So **technically, an unregistered dealer cannot legally sell goods interstate** because CST/GST registration is mandatory for interstate supplies exceeding threshold limits.
---
### What happens if a small unregistered dealer sells goods interstate?
* The buyer can **purchase goods but without CST charged**, so the invoice will be without tax.
* The buyer must treat such purchases as **from an unregistered dealer (URD)**.
* The buyer **cannot claim input tax credit (ITC)** on such purchases.
* The buyer must comply with **local state laws for entry tax or purchase tax**, if applicable.
---
### Practical scenario in your example:
* You (buyer in State A) want to purchase from a small shopkeeper in State B who has **no VAT/CST registration**.
* The shopkeeper sells the goods without CST.
* You get an invoice without CST.
* You receive goods in your state but **cannot claim CST credit**.
* This purchase is treated as a **non-taxable purchase from an unregistered dealer**.
* For your accounting and tax filings, treat this as a purchase without tax credit.
---
### Important notes:
* The **seller may be liable for penalty or notice** from tax authorities for making interstate sales without registration.
* The buyer should ensure proper documentation and disclose such purchases correctly in tax returns.
* Post GST (after July 2017), **all interstate supplies require GST registration and tax payment** if turnover exceeds threshold.
---
### Summary Table:
| Seller Status | Interstate Sale Allowed? | Tax Charged | Buyer Can Claim ITC? | Notes |
| --------------------------- | ------------------------ | ----------- | -------------------- | --------------------------------- |
| Registered dealer (CST/GST) | Yes | CST/GST | Yes | Normal interstate purchase |
| Unregistered small dealer | No (not legal) | No CST | No | Buyer treats as purchase from URD |
---
If you want, I can help draft a note for your client explaining this or prepare a checklist for interstate purchases compliance!
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Money lost in stock market related scam
- Error whilst validation
- Required to submit form 10IEA_fy 24-25
- Reminder of Dues under the WBGST Act 17
- Rebate u/sec. 87A manually
- ITR2 Not Validating Short Term Capital Loss as value less than zero
- ITR3
- ERRROR IN ITR2 FILING
- GSTR ITC relationship
- Hash value error indicated whilst validating itr 2 online
- ITRU invalid and political donation
- Regarding Hackathon Prize W-8BEN Form Tax Treaty Benefit & 115BB/115BBJ
- Excess Interest paid on TDS challan- Can it adjusted against tax payable
- RECEIPT NUMBER OF EARLIER STATEMENT FILED FOR FORM 26Q- PREVIOUS TDS RETURN FILED FOR F.Y.2017-18_Q4
- Regarding ITC show in Electronic Credit Reversal and Re-claimed Statement.
- TDS on disallowance and reporting
- Requirement of MGT-14 for resolution passed at EGM for appointment of auditor
- ICWAI-Final
- Gratuity Fund Audit & ITR
- RCM gst liability and return query
Trending Online Classes
-
Input Tax Credit, GST refunds and Recovery of refunds- Roadblocks and way outs
CA Nipun Arora03 September 2025 -
GST LIVE Certification Course - 43rd Weekdays Batch(With Govt Certificate)
Industry Expert15 September 2025
CAclubindia
