07 May 2015
Sir, i want to know. Our supplier raised retail invoice for cement boards from delhi to us at up. There is no excise involved. Only cst is applicable. Our finance person is asking for the tax invoice . Pl clarify On urgent basis. Who is right my fin person or my supplier Best regards amit sharma
18 July 2024
In the scenario you've described, where cement boards are being supplied from Delhi to Uttar Pradesh and no excise duty is applicable, the invoicing requirements are as follows:
1. **Type of Invoice:** - For interstate transactions of goods, a Tax Invoice is required under the Central Sales Tax (CST) Act, 1956. This invoice is essential for claiming Input Tax Credit (ITC) against CST paid on purchases.
2. **Contents of the Invoice:** - The invoice should include details such as: - Name, address, and GSTIN (if applicable) of the supplier. - Name, address, and GSTIN (if applicable) of the recipient. - Invoice number and date. - Description of goods (cement boards in this case), quantity, and value. - Rate of CST charged. - Any other relevant terms and conditions.
3. **Tax Invoice vs. Retail Invoice:** - A Tax Invoice is specifically required for interstate transactions involving goods. It serves as a legal document for both the supplier and the recipient to record the transaction and facilitate the movement of goods across state borders. - A Retail Invoice, on the other hand, is typically used for intrastate transactions or retail sales within a state. It may not meet the compliance requirements for interstate transactions under CST.
4. **Responsibility:** - It is the responsibility of the supplier to issue a Tax Invoice for interstate transactions, especially when CST is applicable. This invoice should be provided to the purchaser (you) for record-keeping and compliance purposes.
Therefore, in your case, your finance person is correct in requesting a Tax Invoice from your supplier based in Delhi. This invoice will enable you to claim CST paid as Input Tax Credit, where applicable, and ensure compliance with interstate sale regulations under CST Act. Please ensure that the supplier issues a proper Tax Invoice to avoid any issues related to tax compliance.
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