vat-cst

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eshwar (Querist)
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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?

Nitin

Nitin (Expert)
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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

Nitin

Nitin (Expert)
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10 August 2010 You have to charge CST only .

sachin alwadhi

sachin alwadhi (Expert)
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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.

Nitin

Nitin (Expert)
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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.

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eshwar

eshwar (Querist)
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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

Nitin

Nitin (Expert)
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11 August 2010 CST(Hope you are a registered dealer under CST)

eshwar

eshwar (Querist)
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11 August 2010 yes we are registered dealer under cst act

Aashok Kumar Sharma online

Aashok Kumar Sharma

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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**:

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### 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.

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### 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 |

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### 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.

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### 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.

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If you want, I can help you draft the invoice wording or follow-up letter to get Form C from buyer.

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