Chartered Accountant
1489 Points
Joined August 2011
A is the seller.
B is the customer.
A has acted on the instructions of B to deliver the goods to C directly. For C, no tax shall be payable since it gets covered in the second leg of the transaction.
CST @ 2% shall be recorded in the books of B , since for A the basic transaction is the delivery of goods by A in Rajasthan to B in Gujarat. The delivery of goods to C is a subsequent instruction by B to A .
Also CST is levied when there is an occasioning of movement of goods from one state to another state , which in current case is happening from Rajasthan to Gujarat.