VAT on interstate purchase & sales

This query is : Resolved

hemal (Querist)
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02 February 2011 We have purchased goods from our supplier in Bhopal,MP. The supplier charged us 13% VAT and mentioned our mumbai TIN on the invoice.

We have billed this material to our buyer in Jabalpur, MP and charged them 12.5% VAT.

No C-form was issued by us or our buyer.

The goods were directly delivered by the supplier to buyer (i.e within the state)

My query :
What is my VAT liability ?

Do I have to issue any declaration to supplier or buyer ?

Anand Agarwal

Anand Agarwal (Expert)
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02 February 2011 Hemal: If your Company is not registered in MP (that I suppose not), then first you have to get registered in the State of MP. Then you can charge MP VAT to your buyer.

There is no question of CST in this case because there is no inter-state movement of goods.

Other way out to this situation is to appoint an agent in MP, who will sale on your behalf and would discharge VAT liability also. (you can say consignment agent)

Sunil Arora Advocate

Sunil Arora Advocate (Expert)
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02 February 2011 I also agree with Mr Anand Aggarwal that There is no question of CST liability as where the movement of goods commences and terminates in the same state it shall not be deemed to be a movement of the goods from one state to another.

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