25 July 2024
Under the Central Sales Tax (CST) Act, Form I is used by units located in Special Economic Zones (SEZs) to claim exemption from CST on interstate sales. Here are the key points regarding the period for which Form I can be issued:
1. **Validity Period**: Form I is issued on an annual basis. It remains valid for one financial year starting from 1st April to 31st March of the subsequent year.
2. **Quarterly Reporting**: While Form C, which is used for claiming concessional CST rates on interstate sales, needs to be issued quarterly, Form I is issued annually. This means that a new Form I needs to be obtained each financial year if the unit continues to qualify under SEZ provisions.
3. **Renewal**: Each year, SEZ units must apply for and obtain a fresh Form I from the specified authorities to continue availing the CST exemption benefit for interstate sales.
4. **Submission**: Form I needs to be submitted to the concerned sales tax or commercial tax authority along with relevant documents to claim exemption on interstate sales under SEZ provisions.
Therefore, unlike Form C which is issued quarterly, Form I for SEZ units is an annual certification that needs to be renewed each fiscal year to continue availing the exemption from CST on interstate sales. It's essential for SEZ units to adhere to these timelines to ensure compliance with CST regulations and avoid any penalties or issues related to CST exemption claims.
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