Interstate and local form h

Section 5 of CST Act

 (3) Notwithstanding anything contained in sub-section (1), the last sale or purchase of any goods preceding the sale or purchase occasioning the export of those goods out of the territory of India shall also be deemed to be in the course of such export, if such last sale or purchase took place after, and was for the purpose of complying with, the agreement or order for or in relation to such export."

Form H can not be issued for purchase prior to penultimate sale. It can be issued only for sale immediately prior to the export. So B can not issue form H to A.

Thankyou for the answer sir.

So B has to pay sales tax of 2% against C form.

Is there any procedure where we can save this 2% sales tax?