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Form-h

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Dears Please clarify my doubts. X Ltd (Manufacturer,Tamilnadu), Y Ltd (Buyer,Maharashtra), Z Ltd (Third party, USA). X Ltd sold goods to Y Ltd against CT-1 and Form-C. Y Ltd PO showing they are Export to Z Ltd(USA). in this situation Y Ltd issue CT-1 and Excise Duty will not be applicable ED=0 My Doubts 1) Y Ltd issue CT-1, Whether Y Ltd should be Export the purchased goods from X Ltd. or can use other? 2) if buyer issuing CT-1 whether they should issue Form-H for CST Purpose? 3) if buyer issue CT-1 and Form-C also , whether this transaction is correct?
Replies (1)
  1. Y Ltd is the merchant exporter who has issued CT1 to the manufacturer. Thus, manufacturer can clear goods without payment of excise duty.
  2. Form C will be issued by the buyer for interstate sale (between manufacturer & buyer) at concessional rate of CST.
  3. Both are 2 different aspects: one relates to ED and the other to CST.
  4. Actually, interstate sale can be treated as penultimate sale of export and it is exempt from CST against issue of form H by the exporter.


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