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.
Pls let me know 2 things:
1. by accepting ‘C form’ from the inter state customers whether total amount of CSt 4% is going to nill?
2. why only 2% of CST will be charged against H form?
Pls provide extremely correct details.
@Lokesh
1. The buyer can purchase goods at concessional rates, against C Form, in the inter-state sale. It may be 1% or 2% depending upon item and the concerned state VAT Laws. Please check with your local consultant.
2. If the exporter buyer issues H form, the selling dealer is not required to charge or pay any CST on the transaction.
Hope above clarifies.
Pls clarify, that rate of CST is not going to be nil against ‘C form’, i.e. it may be 1% / 2% etc.
Normally CST against C Form can’t be Nil. However, if those items are exempt from local VAT, then it’s possible.
I want to know whether H Form is valid only against CST or also valid against VAT??
H Form is meant for inter-state supply of materials to exporters. However, if the supply is within the state then CST laws are not applicable and hence H Form under CST is not required to be used.
Where local sale (i.e. intra-state sale) is made to exporter who exported goods, do the seller has to charge VAT to exporter ? Under which provision of VAT, Local seller need not charge VAT on sale made to exporter who exported the goods.?
I am based at chennai and have CST registration, I have to do merchandise export from delhi to poland. Who has to get the form H and to give to whom?
As merchant exporter in Chennai, you will provide H Form to seller in Delhi.
whether H form is part of Inter state sales? if Material supply within the state, then what? plz let me know. also where i have to show in form 704 in Schedule_1?
Of course H Form is used under CST / Inter State Sale made to merchant exporter who eventually will export the such goods out of India. How to handle Sale to Merchant Exporter within the state depends upon the local VAT law in this regard. Unable to understand last part of your question..sorry.
WE had sent the scrap of raw material for reprocessing as the raw material for reuse for production of the goods to Meerut state and now they are demanding F Form. Scrap material was sent for conversion as raw material on labour charges basis only by issuing E.Sugam. Kindly let us know should we issue F Form for our supplier. Kindly clarify
F Form is meant for stock transfer between branch & HO, consignment agent & principal, etc. situations where such material is to be sold later on locally in normal course of business. So demanding F Form for job work materials doesn’t seems to be reasonable.
We are a dealer located at Ghatkopar. We are purchasing goods from a manufacturer located at Navi Mumbai. Now this is a local sale so will not attract CST. We will be exporting goods to Saudi. How can we save the VAT applicable? Will H form come into picture in this case? Please advice
Export of goods is exempt under CST / VAT, so no form is required at all. H Form is required when sale is made to an interstate dealer who will subsequently and finally export the goods.
Thank you for your valuable advice. But still what to do to save VAT? Do i need to provide any declaration to the seller as a proof of export? please advice…..
Saving VAT is not in question at all when exempted exports are the subject matter. Please check with your vendor dealer for documentation requirements, if any, as per applicable local VAT laws.
We are directly exporting material to Nepal without any tax, as the same is exempted. Now the VAT Department is asking for “Form H” to get this exemption. As per our knowledge we have already provided the Bill of Export and other export documents. The problem is from where to get this Form H?
H Form under CST is issued when the buyer is an exporter and buys the goods for the purpose of exports. In the case of direct exports, H Form is not required. It’s advisable to take help from some local VAT consultant to make a written representation to VAT Deptt.
What’s the period within which forms such as Form C, H, F, I, E1, E2, etc. under CST Act are required to be issued?
Purchsed some garment items from Local Supplier against H Form and exported out side india. Just wnat to know where do i declare the export amount and local purchase amount against Form H in karnataka VAT 100?
For local purchases meant for subsequent exports, the H Form (a CST form) is not applicable. Please refer local VAT laws for applicable form and accordingly you can submit information in said KVAT 100.
We are buying raw material against C Form (2% CST) from other states. Final product, which is finally exported, is manufactured using this raw material. So in this case can we as a buyer can get benefits of Form H even if we are not exporting the good in same properties and using as raw material.
If you make direct export of that material then you can take the benefit, otherwise not. Yes. as Purchaser you can give Form H to avail CST exemption on exports.
If some consignment is received on the basis of delivery challan. Is it required to issue Form F for the same??
our firm purchased goods against form-c and transferred material to branch outside state against form F. Has any liability arises under central sales tax act?
We have exported material in the year 2014-2015 but failed to submit H form. Now, our supplier is demanding H form. Can we apply for H form now?
I had purchased a product under H form about 3 years back. My accountant did not generate the same (although he declared as H form type invoice). Now my supplier is demanding the H form. How do I handle this?
WE AT MUMBAI HO RECEIVED “F” FORM FROM OUR RAJASTHAN BRANCH FOR 1ST QUARTER TRANSACTIONS (APRIL, MAY AND JUNE 2012). IS IT VALID OR NOT? CAN WE SUBMIT IT TO MUMBAI TAX DEPARTMENT?
Hi. I form Telangana and unable to generate C form for the month of April to June 2017. In Telangana commercial taxes website when we select an option to generate c form i am getting only H form and F form on the screen. Kindly suggest and do the needful.
I have lost F-form. Department has recently issued me a notice (in 2020) to show F form of 2013-14. What is the remedy now??
Unable to generate C form for the month of April to June 2017, from Telangana commercial taxes website. In fact when we select an option to generate c form, we are getting only H form and F form on the screen.
Our company is located at Mumbai, which deals in selling imported Wines. We have a distributor in Delhi, so we sell from Mumbai to Delhi through CST 2% sale instead of 20% VAT. In the year 2015-20, the Delhi distributor failed to submit ‘C’ forms amount of Rs.10 lacs. Assessing Authority from Mumbai charged 40% penalty on Rs.10 lacs, instead of @ 18%. Is this penalty alright?
We are the chemical dealer in Hyderabad, we made the cst purchase under concessional c-forms and c-form has been received from the department and the same has been handed over to our supplier, In our multiple interstate purchases some of our cst purchase bill not show in our TELENGANA VAT RETURN. how to resolve the issues.
I purchased medicine against H form for exports sale. I did not mention H form on Purchase Order. Also failed to mention Purchase Order date in H form. Now Sale Tax officer wants to disallow this Form in assessment for that year. How can we resolve the issue?
How can we apply Form-H for Export Non-GST supply after GST implementation by the merchant Exporter ?