Use of C Form, F Form and H form under CST/ VAT

To avoid cascading effects of CST/ VAT and to avail concessions or exemptions, various forms, like ‘C Form’, ‘F Form’, ‘H Form’, etc. have been prescribed, which can be issued / utilized by adhering to certain procedures.

C Form / Form C

‘C Form’ comes into picture when interstate trade takes place. The buying dealer from another state issues ‘C Form’ for compliance of ‘CST Rules’ of the state of selling dealer. The buyer can purchase goods at concessional rates, against ‘C Form’, in the inter-state sale. ‘C Form’ can be issued only by a registered dealer to another registered dealer. It can be issued, generally, in respect of raw materials, packing materials goods covered by the certificate of registration of the issuing dealer. If the buying dealer fails to provide ‘C Form’, the selling dealer has to pay full CST in due course, therefore it is advisable to obtain appropriate security until the Form is received by the selling dealer.

F Form / Form F

‘F form’ is required for stock transfer to branches/ consignment agents or vice-versa from one state to another, without attracting charge of CST. As per section 6A(1) of the CST Act, submission of ‘F form’ with complete details of movement of goods is mandatory to prove stock transfer. Otherwise, the transaction will be treated as normal central sale for all purposes of CST Act including for charging CST at applicable rates. In fact ‘F Form’ is an evidence to prove that the goods are sent out to other states on ‘stock transfer basis’ and not on ‘sale basis’. The consignment agent/ branch/ HO receiving such stock transfer consignment is required to issue ‘F Form’ to the selling outlet (HO/ Branch/ Consignment Agent) or transferror dealer.

It may be noted that if the movement of goods is ‘occasioned on account of sales’, the movement will be treated as interstate sales. There are many disputes with the VAT Authorities on this issue. so the transfrerror unit has to take due care to avoid applicability and attraction of CST on such transfers. These matters are open for investigation by the VATO and are not settled until the assessment order is passed by the VATO in due course.

H Form / Form H

‘H Form’ under CST is issued when the inter-state buyer is an exporter and buys the goods for the purpose of exports. If the exporter buyer (who belong to other state) issues ‘H form’, the selling dealer is not required to charge or pay any CST on the transaction. The selling dealer should obtain ‘Form H’ from the exporter buyer in due course along with Bill of Lading for onward submission to the VAT Deptt. or else eventually the selling dealer has to pay CST at full rate as may be applicable. Selling dealer should always obtain security to the extent of amount of applicable CST/ VAT which is not charged due to anticipated issuance of Form H and the same may be released after receipt of duly filled up ‘Form H’ along with copy of the Bill of Lading in due course.

It may be noted that ‘H form’ is meant to facilitate exports/ penultimate sale of the same goods only, thru a merchant exporter, i.e. ‘H form’ should not be used for buying raw materials for the purpose of use in manufacture of finished goods which are proposed to be exported.

Tags:

36 Comments

  1. Lokesh
    • Ashwani Mehta
      • Lokesh
      • Ashwani Mehta
  2. Jagdish
    • Ashwani Mehta
      • Shashikant Dimble
  3. selvakumar
    • Ashwani Mehta
  4. Lokesh Vyas
    • Ashwani Mehta
  5. L Vishalakshi
    • Ashwani Mehta
  6. Sadanand Sawant
    • Ashwani Mehta
      • Sadanand Sawant
      • Ashwani Mehta
  7. Ashish Jain
    • Ashwani Mehta
      • Neha agrawal
      • savithri
      • Vinay
  8. Rahul
    • Ashok Kumar Thakur
  9. Vipin
  10. Animesh
  11. malik khan
  12. Akhil
  13. SOBHA
  14. Ravi
  15. Rohit
  16. msn
  17. ASHISH
  18. E. SATISH KUMAR
  19. Riyaz Mulla
  20. Rayudu

Leave a Reply