Export of manufactured goods -sales tax form h

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Querist : Anonymous

Querist : Anonymous (Querist)

03 August 2013 DEAR SIR
FOR EXPORT OF MANUFACTURED GOODS CAN WE PROCURE THE RAW MATERIALS THROUGH FORM H WITH OUT SALES TAX

RENGARAJ R.K

RENGARAJ R.K (Expert)
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04 August 2013 No, you can get the material -both inputs and packing materials without tax against form H only for direct export and merchant export.

Querist : Anonymous

Querist : Anonymous (Querist)

05 August 2013 SORRY SIR MY Question is not clear
FOR EXPORT OF MANUFACTURED GOODS CAN WE PROCURE THE RAW MATERIAL (CST AND VAT PURCHASES) THROUGH FORM-H

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Asha Kanta Sharma online

Asha Kanta Sharma

(Expert)
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24 July 2024 Form H, under the CST Act (Central Sales Tax Act), allows registered dealers to procure goods at a concessional CST rate (usually 2% against Form H) for the purposes of resale, manufacturing, processing, or generation of power. However, there are specific conditions under which Form H can be used for procuring raw materials for export of manufactured goods:

1. **Usage of Form H for Raw Material Procurement**:
- **Manufacturing Purpose**: You can procure raw materials (CST and VAT purchases) using Form H if these raw materials are intended for use in the manufacturing of goods that are ultimately exported.
- **Validity**: Form H is valid only if the goods purchased using it are used in manufacturing, processing, or packing of goods for export out of India.

2. **Conditions and Documentation**:
- Ensure that you meet the conditions laid down by the state authorities regarding the use of Form H for purchasing raw materials.
- Proper documentation and compliance with the provisions of the CST Act are crucial. This includes maintaining records of Form H issued and utilized, invoices of purchases, and proof of exports.

3. **State-Specific Rules**: Different states may have specific rules and conditions regarding the use of Form H. It's important to refer to the CST rules applicable in your state or consult with a local tax expert to ensure compliance.

4. **GST Transition**: With the implementation of GST (Goods and Services Tax), the relevance of Form H has been reduced as CST is subsumed under GST. However, some states may still have provisions for Form H under the CST rules until they are fully phased out.

In summary, yes, you can use Form H to procure raw materials (CST and VAT purchases) for manufacturing goods that are intended for export. Ensure that you comply with all relevant conditions and maintain proper documentation to substantiate your claim for concessional CST rate under Form H.