E1/E2 transaction, VAT + CST

[Tamal Chatterjee]

Suppose manufacturer A sells to trader B (under E1 transaction) with C as ultimate consignee.

A raises invoice as follows:

Basic price = INR 100

ED = INR 12

CST = INR 2

Total = INR 114

B sells it to C under E1 transaction and raises invoice as follows:

Basic price = INR 150

ED (reimbursement) = INR 12

CST = ??

Can you pl help in finding out CST to be charged under question mark (??) above

Posts / Replies

[Ganeshan Kalyani]

Under sale in transit subsequent sale is exempt against form E1.

[Narendra Soni]

Central Sales Tax Act 1956 envisages single point of taxation i.e tax at the first point of sales. Subsequent sales during the movement of the goods from one state to another have been exempted under section 6(2) of CST Act. 'B' will not charge CST.

[YAGAY AND SUN]

Subsequent sales under Rule 6(2) are exempted from the levy of CST.

[Kuldeep Nain]

Dear Sir / Madam

On What AMOUNT C (Consignee) will Issue C form to B (First Buyer). Confusion on amount.

1. ₹ 114

2. ₹ 150