Form C and Form F in CST

 Form C

Form c issued by the registered dealer(purchaser) sale of goods to seller , in case of interstate sales. When a sale by registered dealer sale to registered dealer of  another state then CST  is chargeable 2% provided the registered dealer has  provided CST registered seller. In the absence of c form, CST will be leviable  at rate application in the seller’s state. because the purchaser is not entitled to set off paid CST paid on purchase.

What is contents of Form C?

Following contents for Form c

1. Name address of supplier and purchaser
2. Registration number of supplier and purchaser
3. Details of material purchase (bill)
4. Bill issuing date and amount of bill
5. Serial number of C form
6. State of issue

Who can issue form c?

The Sales Tax Authority issues the ‘C’ forms to the buyer of goods who further fills up all the details of goods and gives to the seller.

 What are the consequences if the ‘C’ form is not issued by the purchase?

 If the ‘C’ form is not issued by the purchaser then the supplier has to deposit all the sales tax at normal rates. No concession shall be given in this case. More over, the supplier has to pay the interest and penalty also. However, legally, he can recover the same amount from the customer.

What is purpose of issuing c Form?

The central sales tax allows the registered dealer to charge / recover a reduced rate (2%) in the bill if the same is sold against the C form to a dealer registered in another state.  The C form is to be collected from the buyer for every 3 months and submitted within the next quarter.

What is penalty for absence of form c?

If the absence of c Form then the CST will be charge rate 5% to the seller. Because c from issue by the registered dealer (purchaser) of registered dealer (seller) for reduced pay CST.

Form F

Form F is required to be produced as proof of stock transfer. As per section 6A(1) submission of F form is mandatory to prove of stock. In the  absence of F form , Stock transfer will be treated as sales under CST Act.

F Form is issued by the branch office/consignment agent receiving goods as branch/stock transfer to its head office/principal who is sending the goods by way of stock/ branch transfer. The head office/ principal produces such form it assessing authority to prove of stock transfer.

Time line of F Form in CST

 The blank form is obtained  the sales  tax authority , in which case when the head office transferred stock of any other branch. F From issued by the branch for office as per prove of stock transfer. One f form is  valid for only  one month.