Understanding Various Forms under

Central Sales tax Act 1956

Introduction
There are various forms prescribed under Central Sale tax Act 1956
which have been framed in other relevant acts. These are as follows:-
1. Central Sales Tax (Registration & Turnover) Rules, 1957:-
Theserules have been framed by the Central Government and
applicable across the country. Forms like Form A,B,C, etc. prescribed
in these rules are also applicable all over India
2. The Central Sales Tax (Name of State) Rules- Theserules
have been framed by the state Government and applicable in that
state only. Formsprescribed in these rules are applicable in concern
state only. For example , Delhi state has framed Central Sales Tax
(Delhi) Rules, 2005 and forms like 1,2,3,4 etc. are applicable in
Delhi state
3. The Central Sales Tax (Union Territories) Rules, . :These
rules have been framed by the Union territory Government and
applicable in that territory only. Forms prescribed in these rules are
applicable in concern territory only. For example, Pondicherry has
framed The Central Sales Tax (Pondicherry)Rules, 1967 and forms
like 1,2,3,4 etc. are applicable in Pondicherry state.

Brief of forms prescribed under The Central Sales Tax

(Registration & Turnover) Rules, 1957 are as follows:-

FORM PURPOSE
No.

A This Form has been prescribed for application of registration under

Central Sales Tax Act 1956.
This is one time activity.
Form can be downloaded from the website of state VAT or can be obtain
from the state VAT department or can be purchased from market in
printed form.

B Certificate of Registration is given in this form by state VAT/ commercial

department.
Certificate describe all the particulars of registered dealer along with
 detail of nature of business & commodities in which dealer will do the
business

C This is the most important and debatable form as trader avail some
concession in tax thru these forms.
Section 8(4)(a), therefore, provides that a concessional rate is
applicable only if the purchasing dealer submits a declaration in Form
C as prescribe by department
Presently concessional rate against C form is 2%.
Submission of C Form is mandatory. If It is not submitted within time
frame then concession will be reversed & dealer shall be liable for
balance tax (difference of normal tax & concessional tax) along with
interest.
Frequency for obtaining C form is on quarterly basis.
One declaration will cover all the transactions related to one quarter.
Earlier one C form was used for entire year transactions of a party.
Following diagram will give more clarity on issuance of C form:-

Seller in State A Buyer in State B

C Form

Buyer will issue Form C to Seller A which will be submitted by seller to

the department for claiming concession.

D It was used for making govt. purchases. From 01.04.2007 It has been
withdrawn

This is used for the sale made to the buyer who does not take physical
delivery. Entire transaction is performed during the movement of goods
from one state to another state.
E1
Section 3(b) provides that a sale or purchase affected by transfer of
documents of title to thegoods during their movement from one state to
& another shall be deemed to take place in thecourse of interstate trade or
commerce
E2
For subsequent transaction of above mention E1 nature transaction
where second buyer also does not take delivery for the same & sale the
material to another one during movement of goods.

The requirements for issuing the above forms i.e. who is to issue which
form and to whom to be issued have been explained with the help of
following diagram
 Inter-state Sales Sale in Transit [ Section 3(b) ]

Sale is effected by transfer of documents of title to the goods

during the movement from one state to another

Interstate Sale(2%) Inter State (0% )

State A State B
C form State B
Seller Buyer 2
E 1 Form Buyer 1 C Form

IInd Seller Takes the delivery of the goods

Ist Seller Total Tax burden
Endorse L/R in 2% CST + 0% CST = 2%
favour of Buyer 2 (otherwise - 2% CST + VAT)

KEY FACTORS
No delivery by the Buyer 1, endorsement on L/R in favour of Buyer 2 by the Buyer 1
Buyer 2 takes the delivery (interstate sale completes )
For exemption to Buyer 1 - E-I Form from first Seller & C form from Buyer 2.

F This form is used when goods are dispatched to branch in another state.
The dealers who dispatch material will collect Form F from the branch
where goods have been delivered & will submit the same to
department.
Blank Forms F are issued by the Sales Tax Department of the State, in
which goods are delivered, to the consignee dealer. For this, consignee
should be registered in the State in which goods are to be delivered.
Form-F is issued by transferee of goods to transferor of goods and one
single form may cover consignments of goods transferred during one
calendar month.

Even submission of form F is require on material sent for job

work & was on returnable basis. Decisions upheld by Honble
Supreme court in case of M/s Ambika Steels Ltd. v/s State of
U.P. and others in Civil Appeal N0. 4970 of 2008, decided on 31st
March 2009also confirm the same.

Manufacturer Depot of Seller Buyer in

/Seller in F Form in State of UP Form As State of UP
State Haryana or any other
Applicable state

G It is the format of Indemnity Bond. Where, Indemnity Bond is required

to be furnished under any provision of the Central Sales Tax Act. 1957,
 it is to be submitted in the format prescribed in Form G.

H This form is used for penultimate sale to an exporter. The seller will
collect the form from exporter & submit to the department.

Manufacturer/ Exporter
in Buyer in China
Seller in State
Haryana StateDelhi

H Form No Form

I Inter-state sale, made to a Special Economic Zone (SEZ) dealer

registered under the Central Sales Tax Act, 1956 for use by him in
authorized operations in the unit in SEZ, is exempt from payment of the
Central Sales Tax if the selling dealer furnishes Form I to its assessing
authority after obtaining it from the SEZ dealer. Blank Forms I are
obtained by SEZ dealer from office of the Development Commissioner of
SEZ in which his unit is located

Manufacturer/ SEZ in
Buyer in China
Seller in State State UP
Haryana

I Form No Form

J This certificate is issued by foreign diplomatic mission or UN in the case

of sale to diplomats. Dealer will collect the form within prescribe time
limit & will submit the same to the Sales tax authority.

Conclusion

The time limit & prescribe procedure have been given in act still it has
been observed that most of the dealers fail to submit the form within
time frame & it becomes matter of litigation. The dealer who is liable to
submit the form, face penalty/interest & other proceedings.
We shall advise dealer to prepare list of action taken by him for
obtaining the form which will help assessing officer for relying on fact
that all the best possible effort has been taken by dealer for obtaining
the form & he may allow additional time limit for submission of form or
might not impose penalty for the same.

By : Tax Advisor, Arcturus