E-1 sale under cst act

This query is : Resolved

Prince Agarwal (Querist)
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15 June 2013 Suppose "A" is a registered trader in Mumbai, Maharashtra.It has its VAT and CST registered Branch in Ahmedabad,Gujarat.Now A's customer "B" who is in Kolkata, West Bengal places an order to A's Gujarat Branch to deliver certain goods.A's Gujarat Branch in turn places order to a manufacturer in Pune, Maharashtra to be directly dispatched to Kolkata.

Now I want to know whether the above transaction is a E-1 Sale under CST Act since Manufacturer(Supplier) and intermediate Trader both are registerd in same state although the order is place by the branch?

Rupesh Jain

Rupesh Jain (Expert)
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15 June 2013 goods supplied by the mfg ( mumbai) to kolkata

its C form sale not E-1

Prince Agarwal

Prince Agarwal (Querist)
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15 June 2013 Sir, Then what would be the role of Trader's branch in Gujarat since order has been placed there in Gujarat? (Maharashtra Manufacturer will issue invoice stating buyer as Gujarat Branch and Consignee as Kolkata)I want to know whether it will qualify for E-1 sale since Manufacturer and Trader both are registered in same state? (When manufacturer, trader and buyer are in 3 different states then E-1 is possible)

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CA Vibhash Kumar Sah

CA Vibhash Kumar Sah (Expert)
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22 July 2013 It can be qualified for EI transaction/exemption provided there is movement of goods from one state to another and the second sale (sale from Gujrat branch to Kolkata party)is by transfer of documents. it does not make any difference, the first seller and first buyer are situated in same state as long as movement of the goods is from one state to another.