Vat or cst
This query is : Resolved
24 March 2016
suppose a dealer in mumbai sells and issues invoice to another dealer in Mumbai.. but the delivery is made to the buyers godown in goa.. what will be the implication??
24 March 2016
It is E-1 sales against C form.
27 March 2016
thank you sir for your response.
can you please confirm if my understanding is correct..
mumbai seller will issue invoice and E1 to Mumbai buyer by charging Vat.
will mumbai buyer charge Cst when he sells goods to Goa party. and will he issue E2?
thank you for all your time sir.
02 August 2025
Here’s how it works in your scenario:
---
### Situation:
* Seller in Mumbai sells to a dealer in Mumbai.
* Goods are delivered directly to the buyer’s godown in Goa.
---
### Tax implications:
1. **For the Mumbai Seller:**
* Since the **invoice is raised to a Mumbai dealer**, but **delivery is outside Maharashtra (to Goa)**, it is treated as an **interstate sale** for tax purposes.
* Mumbai seller should **charge CST (Central Sales Tax)**, not Maharashtra VAT.
* The seller issues **invoice with CST** and obtains a **C Form** from the buyer (E1 is for intra-state sales).
* Delivery to Goa makes it an interstate sale, so VAT does **not** apply.
---
2. **For the Mumbai Buyer:**
* The buyer (Mumbai dealer) has received goods in Goa.
* When the Mumbai buyer sells to a party in Goa (or elsewhere interstate), he will charge **CST** if it’s an interstate sale.
* The buyer issues an invoice and obtains a **C Form (E2)** from the buyer of Goa.
---
### Summary Table:
| Party | Nature of sale | Tax to be charged | Form to be issued |
| ------------- | ------------------------------------ | ----------------- | ----------------- |
| Mumbai Seller | Interstate sale (Maharashtra to Goa) | CST (not VAT) | C Form |
| Mumbai Buyer | Interstate sale (Mumbai to Goa) | CST | C Form (E2) |
---
### Additional notes:
* E1 form is for intra-state sales with delivery inside the same state.
* Since goods are delivered outside Maharashtra, CST is applicable at the seller level.
* Buyer charging CST depends on the location of the final sale delivery.
---
If you want, I can help you draft a sample invoice or forms for this. Would that help?
---
### Situation:
* Seller in Mumbai sells to a dealer in Mumbai.
* Goods are delivered directly to the buyer’s godown in Goa.
---
### Tax implications:
1. **For the Mumbai Seller:**
* Since the **invoice is raised to a Mumbai dealer**, but **delivery is outside Maharashtra (to Goa)**, it is treated as an **interstate sale** for tax purposes.
* Mumbai seller should **charge CST (Central Sales Tax)**, not Maharashtra VAT.
* The seller issues **invoice with CST** and obtains a **C Form** from the buyer (E1 is for intra-state sales).
* Delivery to Goa makes it an interstate sale, so VAT does **not** apply.
---
2. **For the Mumbai Buyer:**
* The buyer (Mumbai dealer) has received goods in Goa.
* When the Mumbai buyer sells to a party in Goa (or elsewhere interstate), he will charge **CST** if it’s an interstate sale.
* The buyer issues an invoice and obtains a **C Form (E2)** from the buyer of Goa.
---
### Summary Table:
| Party | Nature of sale | Tax to be charged | Form to be issued |
| ------------- | ------------------------------------ | ----------------- | ----------------- |
| Mumbai Seller | Interstate sale (Maharashtra to Goa) | CST (not VAT) | C Form |
| Mumbai Buyer | Interstate sale (Mumbai to Goa) | CST | C Form (E2) |
---
### Additional notes:
* E1 form is for intra-state sales with delivery inside the same state.
* Since goods are delivered outside Maharashtra, CST is applicable at the seller level.
* Buyer charging CST depends on the location of the final sale delivery.
---
If you want, I can help you draft a sample invoice or forms for this. Would that help?
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