During the F.Y 2017-18(1st Qtr) we had made sales in Bihar charging @ 2% CST.The bill details are as below A. V = Rs 10,000 + Rs 1236(Excise duty) + Rs 224 (CST ) + 4,000/- (Freight Cost)= Rs 15,460 While submitting Return we have show CST sales of Rs 11,460/ (Excluding Freight Cost) but party provide us "C" forms value of Rs 15,460. My Question is 1) How can we show freight cost at the time of CST Assessment. 2) How we deal with fright cost. 3) What happen if we submit excess value of C Forms.
Requesting you to pls guide me in this regards ASAP.
12 September 2019
Firstly check your sales terms . FOR or EX works. If it ex works , Then please check whether the freight amount is charged in your tax invoice. Then check whether CST amount is charged for freight amount. we need not pay CST if the freight is mentioned as forwarding charges . if all of the above ok, then there is no issue to face CST assessment. At the time of assessment, you may tell to assessing officer that freight recovery is not shown as sales figure that is why the difference between CST collected and our reported figure.
But CST is charged for freight amount in your tax invoice , then you have to prepare reconciliation statement showing CST sales as per our book and CST sales as per C Form and the difference is freight recovery. In my opinion , if we give reconciliation statement is given matching with book , there will be no issue.
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