Taxation

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

06 December 2013 Suppose if someone wants to make a sale from Mumbai to Delhi and then Delhi to Agra without opting for TIN number, how can the transaction be completed?

CS,CA F,Numrologi TusharSampat

CS,CA F,Numrologi TusharSampat (Expert)
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06 December 2013 CST is applicable in this case as there is inter state sales.

Querist : Anonymous

Querist : Anonymous (Querist)

06 December 2013 But we dont have a VAT TIN number, and for taking the goods from Delhi to Agra, road permit is required for which they ask for TIN

CS,CA F,Numrologi TusharSampat

CS,CA F,Numrologi TusharSampat (Expert)
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06 December 2013 so first u need to apply for the same to concern vat dept.

Querist : Anonymous

Querist : Anonymous (Querist)

06 December 2013 i have to complete the sale by today and it is not possible to get the TIN number so soon.

CS,CA F,Numrologi TusharSampat

CS,CA F,Numrologi TusharSampat (Expert)
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06 December 2013 then legally on paper you will be at fault,,,u can pay the int or penalty for this sale and later you obtain tin number as soon as possible.

Querist : Anonymous

Querist : Anonymous (Querist)

06 December 2013 if the person does not intend to obtain TIN, what can be done ?

CS,CA F,Numrologi TusharSampat

CS,CA F,Numrologi TusharSampat (Expert)
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06 December 2013 if by law tin is applicable on u then u cannot escape as when there is inter state ale you need to mandatorily apply for tin number and get yourself registered.

Querist : Anonymous

Querist : Anonymous (Querist)

06 December 2013 but this is the only sale the person has to do. Still do we have to apply for TIN ?

Aashok Kumar Sharma

Aashok Kumar Sharma (Expert)
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26 July 2025 Yes, **even if it's a one-time sale**, if you're engaging in **inter-state trade of goods**, then **you are legally required to obtain a TIN (Taxpayer Identification Number)** or GST registration (as applicable depending on the timeline and prevailing tax laws).

Since your question dates to **December 2013**, here’s how it works under the **pre-GST regime (i.e., VAT/CST system)**:

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### ✅ **Legal Requirement (Pre-GST)**

1. **Sale from Mumbai to Delhi** qualifies as an **inter-state sale**, which attracts **Central Sales Tax (CST)**.
2. To carry out an inter-state sale **legally**, the seller must be **registered under VAT/CST** and must have a **TIN number**.
3. **TIN is also needed to generate road permits or waybills** that are mandatory for the movement of goods across state borders (e.g., from Delhi to Agra).

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### ❌ What If You Don’t Have TIN?

If you're unregistered:

* You **cannot legally collect or deposit CST**.
* You **cannot generate road permits or issue proper invoices**.
* The **transport of goods may be seized or penalized** by VAT/commercial tax authorities at check posts.
* **Penalties and interest** may apply on unregistered sales.

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### ❗ One-Time Sale?

Even if it’s a **one-off transaction**, once you engage in **taxable inter-state sales**, registration is mandatory. **No exemptions exist for “only one sale.”**

The law does not permit such transactions **without registration**, regardless of frequency.

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### ✅ Possible Workaround (Not a legal recommendation, but for understanding)

In practice, some sellers:

* Route the transaction through a **registered dealer/agent** who can bill on their behalf.
* Sell goods **locally to a Delhi-based registered trader**, who then handles the Delhi–Agra part.

But **legally**, the **correct process is to obtain a TIN** before such inter-state sales.

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### 📌 Post-GST Note (For today's context):

If this scenario occurred **after July 1, 2017**, when **GST** was implemented:

* You’d need to **register under GST** if making **inter-state taxable supplies**, even for a one-time sale.
* PAN-based **GSTIN (GST Identification Number)** replaced TIN.

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### 📘 Conclusion:

Under **VAT/CST laws**, even for **a single inter-state sale**, obtaining a **TIN was mandatory**. There’s **no exemption** based on frequency or volume of sales.

Would you like help drafting a short letter requesting voluntary registration or clarifying one-time sale intent to the department?

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