E1 transaction, VAT + CST

[harshal buch]

A -manufacture is in maharashtra B - dealer in kerala C - purchaser in kerala D -site is in kerala My query is A has billed to B under 2%CST extra charges against Form C, goods has been despatched from maharashtra to site at kerala and has been accepted by C- purchaser. C is now not ready to go with this E1 transaction as he says in same state if seller (dealer) and purchaser are registered than they cannot do CST billing? Pls guide me on this query raised by purchase since I belongs to A manu facturer and has much knowledge about this transaction Thanks in advance

Posts / Replies

[YAGAY AND SUN]

Dear Harshal,

This transaction falls under Section 3 (a) of the CST Act, 1956. Under this transaction first sales need to be interstate sales and subsequent sales can be intrastate. You can very much do CST Billings.

Regards

YAGAY and SUN

(Management, Business and Indirect Tax Consultants)