vat-cst
This query is : Resolved
10 August 2010
sale is to be made to buyer in delhi and he will not give c-form.whether to charge mvat or cst?if yes that what will be the rate?
10 August 2010
Current CST rate is 2% with C Form. If C form is not provided by the buyer than rate will be the local VAT rate
10 August 2010
IF SALES TO REGISTERED DEALER THEN CST RATE TO BE CHARGE OR IF SALES TO UNREGISTERED DEALER THEN U HAVE TO CHARGE LOCAL VAT RATE OR CST RATE WHICH IS HIGHER.
10 August 2010
I think now as per the Amendment in the Act itself the position is : Same rate which is applicable to sale of such goods inside the State(whether registered ,unregistered or in case where registered & sold against C form but later party has not given the C Form).Also where is state VAT rate is lower then 2 % ,then even there is no need of C form also.
Message likes :
1 times
11 August 2010
what rate i will have to charge in my bill it will cst or vat(5% if sold in state)?no c-form is going to be recevied
02 August 2025
Hey! Here’s a clear explanation on whether to charge VAT or CST when selling to a buyer in Delhi who **does not provide Form C**:
---
### Situation:
* You are selling goods from Maharashtra (or your state).
* Buyer is in Delhi (another state).
* Buyer will **not provide Form C**.
* You are a registered dealer under CST.
---
### What tax to charge?
1. **Interstate Sale without Form C:**
* Since buyer is in another state, it’s an **interstate sale** → CST applies.
* But **if buyer does not provide Form C**, you have to charge CST **at the full rate** applicable for interstate sales without concessional benefit.
2. **Rates:**
* **With Form C:** Concessional CST rate of **2%** (or sometimes 0% depending on goods).
* **Without Form C:** You charge **local VAT rate** of your state **or** **CST at the normal rate (usually 12.5%)**, whichever is higher.
3. **Local VAT vs CST without Form C:**
* Since no Form C, you **cannot charge concessional CST 2%**.
* You must charge **normal CST rate (usually 12.5%)**.
* **In some cases, the law says you should charge the higher of CST or local VAT.**
* Normally, CST is higher than VAT (5%), so CST at 12.5% applies.
4. **Summary:**
| Buyer Provides Form C? | Tax to Charge | Rate |
| ---------------------- | ---------------------------- | ----------------- |
| Yes | CST at concessional rate | 2% |
| No | CST at full rate or VAT rate | Usually 12.5% CST |
---
### Example for Maharashtra to Delhi sale without Form C:
* Charge **CST @ 12.5%** on invoice.
* Mention in invoice that Form C not received.
* Keep record of your efforts to obtain Form C.
---
### Important:
* You **cannot charge VAT** (which is a state intrastate tax) on interstate sale.
* So, **VAT 5% (Maharashtra VAT)** does **not** apply on sale to Delhi.
---
If you want, I can help you draft the invoice wording or follow-up letter to get Form C from buyer.
Want that?
---
### Situation:
* You are selling goods from Maharashtra (or your state).
* Buyer is in Delhi (another state).
* Buyer will **not provide Form C**.
* You are a registered dealer under CST.
---
### What tax to charge?
1. **Interstate Sale without Form C:**
* Since buyer is in another state, it’s an **interstate sale** → CST applies.
* But **if buyer does not provide Form C**, you have to charge CST **at the full rate** applicable for interstate sales without concessional benefit.
2. **Rates:**
* **With Form C:** Concessional CST rate of **2%** (or sometimes 0% depending on goods).
* **Without Form C:** You charge **local VAT rate** of your state **or** **CST at the normal rate (usually 12.5%)**, whichever is higher.
3. **Local VAT vs CST without Form C:**
* Since no Form C, you **cannot charge concessional CST 2%**.
* You must charge **normal CST rate (usually 12.5%)**.
* **In some cases, the law says you should charge the higher of CST or local VAT.**
* Normally, CST is higher than VAT (5%), so CST at 12.5% applies.
4. **Summary:**
| Buyer Provides Form C? | Tax to Charge | Rate |
| ---------------------- | ---------------------------- | ----------------- |
| Yes | CST at concessional rate | 2% |
| No | CST at full rate or VAT rate | Usually 12.5% CST |
---
### Example for Maharashtra to Delhi sale without Form C:
* Charge **CST @ 12.5%** on invoice.
* Mention in invoice that Form C not received.
* Keep record of your efforts to obtain Form C.
---
### Important:
* You **cannot charge VAT** (which is a state intrastate tax) on interstate sale.
* So, **VAT 5% (Maharashtra VAT)** does **not** apply on sale to Delhi.
---
If you want, I can help you draft the invoice wording or follow-up letter to get Form C from buyer.
Want that?
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
- Notice from IT DEPTT IF FD AMOUNT EXCEEDS 10 LACS
- GST payable under RCM
- Applicablity on tds
- Unable to generate and save json file for updated return
- Regarding TDS not deducted on rent
- Inverted Tax Structure & Unutilized ITC on Services
- Audit of F and O T/O
- GSTR9- ITC
- Section 194I not showing in TDS RPU for Compnay Assessee for TDS on rent
- Tax audit & Switching from Presumptive taxation
- Import purchase entry
- Rule 54(1A) for Distributing ITC
- EXCESS CREDIT REALTED GST REVERSAL
- Export invoice not reported
- CA Articleship Extension Matter
- GST OFFICER WRONG NOTICE
- "Please ensure that the Total of the Deductions u/s 54F match the same in Table D in Sch CG"
- Composition Dealer GST Annual Return Filing process
- Revision under Section 264 in The Income Tax Act, 1961
- TDS under section 195.
Trending Online Classes
-
LIVE Course on GSTR-9 & GSTR-9C (Technical | Practical | Concept - Based)
Sachin Jain03 November 2025
CAclubindia
