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Transaction with e1,e2 without c form with full cst

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bkramdasi

MBA

42 Points Posted on 13 September 2013

Respected Sir,

There are four parties We, our vendor (both in Maharashtra), Our customer (in gujarat as well as Maharashtra also) & end customer ( in gujrat). End customer wants to avail Cenvat Credit but can not give form C.

Our Vendor will charge us full CST 12.5% on his selling value to us. Can we & our customer then pass the same CST to end customer?. We & our customer will not charge any additional CST on our selling value.

Can we do it only by issuing E1,E2 forms without C form if there is full CST of 12.5% charged by only our vendor?

Please advice.

Replies (2)

MJ Krishnamurthy

ACCT(Retd)

5757 Points Posted on 13 September 2013

Mr bkramdasi,

You and your vendor are in Maharashtra.When the vendor sells some products to you he will charge 12.5% of Mahavat.Then you will sell to your customers in your state charging again12.5% mahavat and taking input credit of tax collected by vendor.When you sell the same products to your customers of Gujarat 2% CST may be charged against C form.To an end customer in Gujarat again tax free and transit sale can be made also using E1 and C forms.....mjk