Forms

The C Form comes into picture when interstate trade takes place. The buyer dealer of different state issues C Form for compliance of CST Rules of the state of selling dealer. The buyer can purchase goods at concessional rates, against C Form, in the inter-state sale. C Form can be issued only by a registered dealer to another registered dealer. It can be issued, generally, in respect of raw materials, packing materials goods covered by the certificate of registration of the issuing dealer. If the buyer dealer fails to provide C Form, the seller dealer has to pay full CST in due course, therefore it is advisable to obtain appropriate security until C Form is received by the seller dealer in due course.

The F form is required for stock transfer to branches / consignment agents or vice-versa from one state to another without attracting charge of CST. As per section 6A(1) of the CST Act, submission of F form with complete details of movement of goods is mandatory to prove stock transfer. Otherwise, the transaction will be treated as normal central sale for all purposes of CST Act including for charging CST at applicable rates. In fact F Form is an evidence to prove that the goods are sent out to other states on stock transfer basis and not on sale basis. The consignment agent/ branch/ HO receiving such stock transfer consignment is required to issue F Form to the selling outlet (HO/ Branch/ Consignment Agent) or transferror dealer. It may be noted in this regards that if the movement of goods is occasioned on account of sales, the movement will be treated as interstate sales. There are many disputes with the VAT Authorities on this issue so the transfreror unit has to take due care to avoid applicability and attraction of CST on such transfers. These matters are open for investigation by the VATO and are not settled until the assessment order is passed by the VATO in due course.