Regarding e-1 form in cst

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

27 December 2011 As its mentioned in Rule 7 cst E-1 form is to be issued by First seller to purchaser in course of inter state trade..

1) What is benifit to orignal purcahser by receiving an E-1 form ?

2) Can it be construed (as its a first sale) issuer of E1 form would always be a manufacturer?

MJ Krishnamurthy

MJ Krishnamurthy (Expert)
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01 January 2012 Mr Author,
The benifit the original purchaser gets is sale without CST or local tax on his sale.
The issuer of E1 form need not be a manufacturer only. E1 transactions take place often between traders also....MJK