Importance of c form

Can some one tell me the importance of 'C' form under cst act??

Replies (10)

c form is used for inter sales or inter state purchase suppose if u made purchase outside that state uwant buy the goods @ 2% cst and uwant give form c to the supplier within 3 months from the date of filing the returns and opposite supplier should have valid tin no

C form is colleted from a registered buyer so that the tax collected from him is only 2%. otherwise if C form is not recived the seller should collect 5% tax or tax rate applicable. Now in real meaning C form is equalent to 3% Tax(5%-2%)

 

if a registered dealer inter state purchase then he can use c form for 2% cst tax. if we cant provide C form then it will be normal Vat rate 5% or 14% 

Is there any limitation period to provide C form by the buyer to seller? Plz inform.
Is there any limitation period to provide C form by the buyer to seller? Plz inform.
C form to be collected from buyer within 3months from the date of invoice.

CST rate is lower than VAT. C Form acts as a declaration, certified by the respective state VAT authority that the transaction for which the particular C Form is issued is indeed an inter state sale liable to CST and not VAT. From an audit perspective, along with C Form, one also needs to verify the lorry receipt to check the destination of the consignee/buyer to ensure that it is an inter state sale.

C-form is given by buyer to seller in the interstate sales. Buyer from one state issue C-form to seller of another state to avail the benefit of 2% rate.

If buyer doesn't provide such c-form then seller will charge sales tax at local rates of his state.

"C" Form is a important Declaration to be issued to the inter state supllier by a registered dealer against the inter state purchases during one quarter.

A dealer registered under CST act can apply for C forms by furnishing the details of the supplier,, bill detail, transit detail, road permit detail.. in a proper format issued by the sales tax dept of every state

And the same is to be shown by buyer and seller both in the monthly return of turnover.

The supplier has to obtain C forms from each of the interstate dealers, one C form for each quarter

By using C form the CST liability of the buyer turns 2%, whereas if the supplier fails to produce the C forms obtained from the buyers .. before the Sales tax department, the supplier have to deposit the sales tax @ local tax. 

Sometimes the buyer fails to provide c form to the supplier, thats is why the supplier keeps a sum of amount , equivlnt to CST without C form, and same is adjusted when the buyer provides tge c forms to the supplier

Only a registered dealer can issue the form C. By using  form C buyer shall be liable to pay 2% on the Turnover. If buyer fails to provide form C then he shall be liably to pay 2% CST or the VAT rate ( in the area/State)  which shall be the Highest.

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
ARTICLESHIP 07 October 2026
Article assistant

S.K.Bajpai & Co.

Noida

B.Com

View Details
Company
12 October 2026
Finance

I-Genext Consulting Private Limited

New Delhi

CA

View Details
Company
26 September 2026
Chartered Accountant

pushpganga ventures

Pune

CA

View Details
Company
08 October 2026
SALES TELECALLER

HIRE NOVA

Lucknow

Graduate (Any)

View Details
Company
19 September 2026
CA/Semi-CA/BCom

Pravin Sarvaiya

Mumbai

CA Inter

View Details
Company
22 September 2026
Account Assistant

Chirag P Shah & Co. Chartered Accountant

Pune

B.Com

View Details
Company
ARTICLESHIP 08 October 2026
ARTICLE TRAINEE

S.B.G. & CO. CHARTERED ACCOUNTANTS

New Delhi

CA Inter

View Details
Company
12 October 2026
AUDIT , ACCOUNTS AND TAXATION

KDSS

New Delhi

B.Com

View Details