Our clarifcations on CST read with VAT Act on issues relating to C Forms:

Purpose of C-Form: This form can be issued by registered purchase dealer against
interstate purchase of goods , if such goods are covered in the registration
certifcate. Against this Form the purchase dealer has to pay CST as per section
8(! (b! of CST Act,"#$, sales tax !" or state rate %hichever is lo%er.
&ther%ise the purchaser has to pay applicable state rate from %here such goods
are sold.
'() ( can ma*e interstate sale to registered purchase dealer in &rissa, against C
form to be issued by the &rissa purchaser, by charging CST +,- or applicable
.A/0 state rate %hichever is less. Suppose applicable of A/ state rate (vat rate! is
1.#- since goods are sold from A/., (, the seller, has to collect CST +,- rate only
as this rate is lo%er, and pay to the 2epartment. 3f &rissa purchaser is not
registered dealer, then ( has to collect CST at applicable state rate (4AT rate of
this state! +1.#- from that sale to the interstate purchaser.
56s.( for the above mentioned sale has to pay CST +,- concessional rate, by
submitting a declaration in C form to be issued by the purchase dealer in &rissa as
per section 8 (1! (a! of CST Act.
3t may be noted in this connection that selling dealer is not liable for false
declaration made by the purchase dealer by issuing C7Form against goods not
covered by the registration certifcate. 3f he does so buyer is only liable for penalty
and penal provisions. 8.9.3ndustries 4 ST& ("""! : STC 1" (5/;C!.
Su#mission of C-Forms with $urisdictional Sales Tax authorities:
56s.(, sales dealer, has to collect and submit C7Forms relating to the sales
transactions a<ected during the period (i.e., during the =uarter!, %ithin three
months from the end of such period as per >ule , (?!of CST (>egistration @
Turnover!>ules,"#?. ST& can allo% further time up to $ months for submission of
the form, if there is suAcient cause for not submitting the form in time.
;ence the C forms can be submitted even after the flling of annual statement i.e. at
the time of assessment or after%ards and the same can be ta*en cogniBance of
since no loss is caused to the revenue by not flling the C forms along %ith annual
statement. &n receipt of notice from ST& for payment of di<erential taC against C
forms not submitted, and by that time C forms are still not received than ( can
re=uest for eCtension of time and ST& can give time for submission of C forms up
to $ months on sho%ing valid reasons for non submission of the same.
C forms generally should be submitted before the frst assessing authority. After the
assessment, appellate authority can allo% submission of C forms if suAcient cause
is sho%n for not submitting the C forms before the assessing authority. This is
because the appellate authority has po%ers of reassessment
3t is advisable that the dealer should maintain proper record of follo% up and e<orts
made %ith buyer to obtain C forms to prove that he made all possible attempts to
obtain C forms %ithin time. 3n such case it %ill help proving the suAcient cause for
not submitting the C form %ithin time and appellate authority %ill accept the C
forms at appellate stage if obtained after assessment.
3f suAcient cause 3s sho%n for late submission of C forms, the assessment can be
reopened as it %as held in State of Tamilnadu 4 Aru*murugan and Co . ,("8,! #
STC :8 ((5ad ;C 2D!.
3t is recommended to ensure that C forms are collected %ithin : months from the
end of transaction period. >egarding submission of C forms to ST& 56s. ( should
ensure that &riginal copies submitted are duly ac*no%ledged by the ST& and fled
for future record. This is because, there are instances %here original forms
submitted are lost at ST& and they are insisting for its resubmission and lot of
hardship has to be faced by the sales dealer, for obtaining duplicate.
3f the C form is lost by the seller, then has to submit indemnity bond to sales taC
authorities of his state, in Form 9.
%hate&er might #e the 'ule position( STO is accepting C forms e&en
#efore the assessment proceedings which ma) ta*e + )ears and a#o&e, -n
&iew of the a#o&e !./.-!.// C forms can #e fled e&en now and can get
#eneft of collecting tax at concessional rate as per a#o&e mentioned
pro&isions,,
0owe&er( it is alwa)s ad&isa#le to adhere to the 'ule position,
There are no separate fnancial and accounting implications except to
ma*e pro&isions for di1erential tax if insisted upon, -t ma) #e noted if
there is su#stantial dela) in collection of C forms particularl) isolated
transactions it ma) #e di2cult to collect such C forms later,,
3t may be noted that there is no provision to submit certifed (eroC copy of earlier
certifcate and (eroC copy is not acceptable. E.F.Eeti%a 4 state of 5aharashtra7
(""#! 5TE 1" (5ah Trib!.
3f C forms are not submitted6collected for siC months, the purchaser may be insisted
either to submit C form or pay di<erential amount of taC charged at concessional
rate and state taC (vat rate of this state! chargeable by raising debit note to this
e<ect. 3n near future the auditors may insist for ma*ing provision in the account
to%ards di<erential duty if C forms are not collected as per >ule , (?!.
2uly flled C form should be issued to the seller. Sometimes C form is obtained in
advance and particulars of invoice etc., are flled later. This is not legally correct,
as section 8(1! uses the %ords Gto %hom goods are sold. Thus, duly completed C
forms should be obtained only after sale. &ther%ise C forms can be reHected.
Salem 5agnesite 4 State of Tamil Fadu ("""! $ STC I (5ad ;C 2D!.
ST& cannot reHect C forms for minor defects such as omission of date of registration
or minor variation in amount. >aHsthan /ipes 4 CT& (,II1! :8 STC :8: (Cal ;C!. 3f
there are minor defects in the C form submitted e.g., Chillan no., date etc., not
mentioned, or name of dealer is misspelt the oAcer should give reasonable
opportunity to the dealer to remove the defects7Anil 8umar 2atta 4 Addl 5ember
("$?! ,I STC #,8 (Cal!.
3n the State of &rissa 4 &rissa /olish Jor*s ("?I! ,$ STC 18I (&ri ;C!, it %as held
that C from should be returned to the selling dealer for rectifcation. Selling dealer
should be allo%ed reasonable opportunity for this purpose.
C form can be submitted even at appellate stage if suAcient cause is sho%n
C Forms and interstate purchasing dealer:
3n the case of interstate sales, purchase dealer has to issue C form to sales dealer
in other state in order to avail beneft of concessional rate of CST ,- or applicable
state rate %hichever is less. 3n the case purchaser is not registered dealer then
sales dealer of other state %ill charge applicable state rate of his state.
'Cample) Suppose ( is registered dealer %ants to purchase materials from &rissa
sales dealer. Suppose applicable state rate for those materials in &rissa is #- (i.e.,
applicable 4AT rate of &rissa state!. Then ( has to purchase those materials by
paying to the seller +,- rate against C form or if it is not a registered purchase
dealer (let us presume! then it has to pay CST at applicable state rate of &rissa i.e.,
#- since it cannot issue C form to the seller.K Sec.8 (! (b!68 (1!(a!L
-ssue of C forms:
Dlan* C forms can be obtained form sales taC oAce by registered dealer for issuing
against interstate purchases. 3f registration is %rong authorities can amend or
cancel C forms. ;o%ever, a registered dealer is entitled to receive blan* C forms.
Colourgraph ST&7("":! 88 STC :1? (8er ;C!
Fumber of transactions per C forms) &ne declaration in C form can cover all
transactions in one =uarter in the name of each seller , irrespective of total
amount6value of transations during the =uarter. Muarter means : months
commencing from April, 1 =uarters in fnancial year. 3f transaction cover more than
one =uarter, separate C form is re=uired to be issued for each =uarter.
Fo% the purchase dealer has to upload all details of purchases made seller %ise
entering details of sellerNs name, CST registration no., desdription of materi als
purchased, =uantity and value etc to generate C forms through net and issue to
sales dealers after endorsing the same.
Fo C form can be issued against reHected goods, since such goods cannot be used
for manufacture or resell.
Triplicate copies of C forms) The C form consist of three copies, original, duplicate
and counterfoil. All three copies are identical in contants.
Section 8(1! and rule ,(! do not specify %hich part of C form should be produced
before the assessing authority
;ence, in 5anganese &re (3! Otd., 4. CST75/ (""!T C ( 5/ ;C 2D! it is held
that flling of copy mar*ed 2uplicate is enough compliance of the la% and
concessional rate of sales taC rate %ill be available even if copy mar*ed
original is not produced.
;o%ever, if CST rules as amended by states re=uire submission of original
copy, then only original %ill have to be submitted.
Therefore, one need to chec* the relevant CST state rules if any, amended to
this e<ect before furnishing the duplicate copy of C form.
3f buyer looses C form or lost in transit he has to obtain duplicate by flling
indemnity bond in form 9. 3f seller looses it he has to submit indemnity bond
%ith sales taC authorities of his Hurisdictional state. Such duplicate should be
mar*ed %ith red in* as GduplicateN.