Vat or cst
This query is : Resolved
24 March 2016
suppose a dealer in mumbai sells and issues invoice to another dealer in Mumbai.. but the delivery is made to the buyers godown in goa.. what will be the implication??
24 March 2016
It is E-1 sales against C form.
27 March 2016
thank you sir for your response.
can you please confirm if my understanding is correct..
mumbai seller will issue invoice and E1 to Mumbai buyer by charging Vat.
will mumbai buyer charge Cst when he sells goods to Goa party. and will he issue E2?
thank you for all your time sir.
02 August 2025
Here’s how it works in your scenario:
---
### Situation:
* Seller in Mumbai sells to a dealer in Mumbai.
* Goods are delivered directly to the buyer’s godown in Goa.
---
### Tax implications:
1. **For the Mumbai Seller:**
* Since the **invoice is raised to a Mumbai dealer**, but **delivery is outside Maharashtra (to Goa)**, it is treated as an **interstate sale** for tax purposes.
* Mumbai seller should **charge CST (Central Sales Tax)**, not Maharashtra VAT.
* The seller issues **invoice with CST** and obtains a **C Form** from the buyer (E1 is for intra-state sales).
* Delivery to Goa makes it an interstate sale, so VAT does **not** apply.
---
2. **For the Mumbai Buyer:**
* The buyer (Mumbai dealer) has received goods in Goa.
* When the Mumbai buyer sells to a party in Goa (or elsewhere interstate), he will charge **CST** if it’s an interstate sale.
* The buyer issues an invoice and obtains a **C Form (E2)** from the buyer of Goa.
---
### Summary Table:
| Party | Nature of sale | Tax to be charged | Form to be issued |
| ------------- | ------------------------------------ | ----------------- | ----------------- |
| Mumbai Seller | Interstate sale (Maharashtra to Goa) | CST (not VAT) | C Form |
| Mumbai Buyer | Interstate sale (Mumbai to Goa) | CST | C Form (E2) |
---
### Additional notes:
* E1 form is for intra-state sales with delivery inside the same state.
* Since goods are delivered outside Maharashtra, CST is applicable at the seller level.
* Buyer charging CST depends on the location of the final sale delivery.
---
If you want, I can help you draft a sample invoice or forms for this. Would that help?
---
### Situation:
* Seller in Mumbai sells to a dealer in Mumbai.
* Goods are delivered directly to the buyer’s godown in Goa.
---
### Tax implications:
1. **For the Mumbai Seller:**
* Since the **invoice is raised to a Mumbai dealer**, but **delivery is outside Maharashtra (to Goa)**, it is treated as an **interstate sale** for tax purposes.
* Mumbai seller should **charge CST (Central Sales Tax)**, not Maharashtra VAT.
* The seller issues **invoice with CST** and obtains a **C Form** from the buyer (E1 is for intra-state sales).
* Delivery to Goa makes it an interstate sale, so VAT does **not** apply.
---
2. **For the Mumbai Buyer:**
* The buyer (Mumbai dealer) has received goods in Goa.
* When the Mumbai buyer sells to a party in Goa (or elsewhere interstate), he will charge **CST** if it’s an interstate sale.
* The buyer issues an invoice and obtains a **C Form (E2)** from the buyer of Goa.
---
### Summary Table:
| Party | Nature of sale | Tax to be charged | Form to be issued |
| ------------- | ------------------------------------ | ----------------- | ----------------- |
| Mumbai Seller | Interstate sale (Maharashtra to Goa) | CST (not VAT) | C Form |
| Mumbai Buyer | Interstate sale (Mumbai to Goa) | CST | C Form (E2) |
---
### Additional notes:
* E1 form is for intra-state sales with delivery inside the same state.
* Since goods are delivered outside Maharashtra, CST is applicable at the seller level.
* Buyer charging CST depends on the location of the final sale delivery.
---
If you want, I can help you draft a sample invoice or forms for this. Would that help?
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- GSTR9- ITC
- Audit of F and O T/O
- GST 9- Table 8
- REVENUE RECOGNITION AS PER IND AS 115
- RCM on GTA Services
- How to update Transaction data in broker samco account holding after transfer shares KARVY
- Applicablity on tds
- Unable to generate and save json file for updated return
- GST payable under RCM
- WRONGLY UPLOADED 10IF FOR COOPERATIVE SOCIETY
- Related to Rate of Depreciation
- Mismatch of Sales Invoice in GSTR-1
- Query on Mismatch of Sales Invoice in GSTR-1
- Import purchase entry
- Rule 54(1A) for Distributing ITC
- EXCESS CREDIT REALTED GST REVERSAL
- Export invoice not reported
- CA Articleship Extension Matter
- GST OFFICER WRONG NOTICE
- "Please ensure that the Total of the Deductions u/s 54F match the same in Table D in Sch CG"
Trending Online Classes
CAclubindia
