Vat or cst bill
This query is : Resolved
JITENDRA JANGIR
(Querist)
28 October 2016
Sir,
My firm registered in Jaipur and I am vendor.
Purchaser firm registered in Delhi. Purchaser firm asked me send material at Jodhpur. What I do. Bill is CSt or vat and how treatment as per vat or CST and what rate applicable when he issue C Form.
My firm registered in Jaipur and I am vendor.
Purchaser firm registered in Delhi. Purchaser firm asked me send material at Jodhpur. What I do. Bill is CSt or vat and how treatment as per vat or CST and what rate applicable when he issue C Form.
KAVIRAJA ADDANGADI
(Expert)
28 October 2016
If you bill for Delhi and delivered at jodhpur, than it is E1 sales than CST is applicable.
JITENDRA JANGIR
(Querist)
29 October 2016
he issue C form or not and what rate of cst
JITENDRA JANGIR
(Querist)
29 October 2016
what is E1 Sales
02 August 2025
Got it! Let me break this down for you clearly:
---
### Scenario:
* Your firm is **registered in Jaipur, Rajasthan** (seller).
* Purchaser is **registered in Delhi** (buyer).
* Goods to be delivered at **Jodhpur, Rajasthan** (within Rajasthan).
---
### What type of sale is this?
* **Invoice to Delhi buyer** (out-of-state buyer).
* **Delivery in Rajasthan** (within your state).
---
### Tax treatment:
1. Since **delivery is inside the seller’s state (Rajasthan)**, this is treated as **intra-state sale** for VAT purposes, even though the buyer is out-of-state.
2. **You should charge VAT**, not CST, because goods are delivered within Rajasthan.
3. Buyer **does NOT issue C Form** here, because C Form is for interstate purchases.
4. The invoice is a **VAT invoice** at the applicable **Rajasthan VAT rate**.
---
### What if delivery was outside Rajasthan?
* If delivery was to Delhi (outside Rajasthan), then it would be **interstate sale** and **CST** would be applicable.
* In that case, buyer issues **C Form**, and CST is charged at **2% or applicable rate**.
---
### What is E1 sale?
* **E1 sale** means intra-state sale where goods are supplied within the same state but invoiced to a buyer in another state.
* Usually, E1 sales occur when the place of business of the buyer is in another state but delivery is within the seller’s state.
* For E1 sales, **VAT applies**, not CST.
---
### Summary table for your case:
| Situation | Tax to charge | Form issued by buyer |
| ------------------------------------------------- | -------------------------------------- | -------------------- |
| Invoice to Delhi, delivery in Jodhpur (Rajasthan) | VAT (Rajasthan VAT) at applicable rate | No C Form |
| Invoice to Delhi, delivery in Delhi | CST at applicable rate (usually 2%) | C Form |
---
If you want, I can help you draft the invoice or explain the process to get C Forms or VAT invoices. Let me know!
---
### Scenario:
* Your firm is **registered in Jaipur, Rajasthan** (seller).
* Purchaser is **registered in Delhi** (buyer).
* Goods to be delivered at **Jodhpur, Rajasthan** (within Rajasthan).
---
### What type of sale is this?
* **Invoice to Delhi buyer** (out-of-state buyer).
* **Delivery in Rajasthan** (within your state).
---
### Tax treatment:
1. Since **delivery is inside the seller’s state (Rajasthan)**, this is treated as **intra-state sale** for VAT purposes, even though the buyer is out-of-state.
2. **You should charge VAT**, not CST, because goods are delivered within Rajasthan.
3. Buyer **does NOT issue C Form** here, because C Form is for interstate purchases.
4. The invoice is a **VAT invoice** at the applicable **Rajasthan VAT rate**.
---
### What if delivery was outside Rajasthan?
* If delivery was to Delhi (outside Rajasthan), then it would be **interstate sale** and **CST** would be applicable.
* In that case, buyer issues **C Form**, and CST is charged at **2% or applicable rate**.
---
### What is E1 sale?
* **E1 sale** means intra-state sale where goods are supplied within the same state but invoiced to a buyer in another state.
* Usually, E1 sales occur when the place of business of the buyer is in another state but delivery is within the seller’s state.
* For E1 sales, **VAT applies**, not CST.
---
### Summary table for your case:
| Situation | Tax to charge | Form issued by buyer |
| ------------------------------------------------- | -------------------------------------- | -------------------- |
| Invoice to Delhi, delivery in Jodhpur (Rajasthan) | VAT (Rajasthan VAT) at applicable rate | No C Form |
| Invoice to Delhi, delivery in Delhi | CST at applicable rate (usually 2%) | C Form |
---
If you want, I can help you draft the invoice or explain the process to get C Forms or VAT invoices. Let me know!
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