Exporter's point of view

This query is : Resolved

Mandar Deshmukh (Querist)
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24 December 2010 if an exporter who already had done turnover of about Rs.2,00,000 till date & wanted to issue Form-H to its supplier for upcoming interstate purchase,

What are the formalities to be done in this regard as the exporter is not yet registered under CST & VAT?

Is registration necessary to issue form-H because somewhere I heard that Form-H can be availed by paying Rs.27/- as stamp duty.

Hitender Gaur

Hitender Gaur (Expert)
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25 December 2010 in which state- mention it.

Mandar Deshmukh

Mandar Deshmukh (Querist)
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04 January 2011 Maharashtra

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Asha Kanta Sharma

Asha Kanta Sharma

(Expert)
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24 July 2024 In Maharashtra, Form H is used for claiming exemption from CST (Central Sales Tax) when purchasing goods interstate for the purpose of export. Here’s the process and requirements for an exporter who is not yet registered under CST and VAT but wishes to issue Form H:

### Registration under CST

1. **CST Registration Requirement:**
- **Threshold:** Generally, CST registration is mandatory for dealers engaged in interstate sales or purchases of goods.
- **Exemption under Form H:** Form H can only be issued by registered dealers under CST who are engaged in the sale of goods for export.

2. **Procedure for CST Registration:**
- **Application:** File an application for CST registration with the Sales Tax Department.
- **Documentation:** Submit required documents such as identity proof, address proof, PAN card, etc.
- **Inspection:** Sometimes, a physical verification of the business premises may be required.
- **Fee:** Pay the prescribed fee for registration.

### Form H Issuance

1. **Eligibility:**
- **Exporter Status:** Ensure the business is genuinely engaged in export activities.
- **Supplier Eligibility:** The supplier must be registered under CST and should be selling goods that are intended for export.

2. **Procedure:**
- **Registration:** Obtain CST registration if not already registered.
- **Stamp Duty:** For issuing Form H, stamp duty is applicable. In Maharashtra, this duty is Rs. 27.
- **Application:** Submit an application for Form H along with necessary documents to the Sales Tax Department.
- **Verification:** The department may verify the details provided and the intention to use the goods for export.
- **Issue of Form H:** Upon approval, Form H will be issued allowing the exporter to purchase goods interstate without paying CST.

### Considerations

- **Compliance:** Ensure all requirements for CST registration and Form H issuance are met to avoid penalties or delays.
- **Documentation:** Keep records of all transactions and Form H issued to suppliers for audit purposes.
- **Consultation:** It’s advisable to consult with a tax advisor or CST consultant to understand specific requirements and ensure compliance.

In summary, while Form H can be availed by paying the stamp duty, CST registration is generally required to issue Form H and benefit from the CST exemption on interstate purchases intended for export. Ensure to complete the registration process and adhere to all procedural requirements laid down by the Sales Tax Department in Maharashtra.