What is use of e1 form

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Querist : Anonymous

Querist : Anonymous (Querist)

06 October 2012 what is use of e1 form.
please explain.

sandeep Dixit

9313766799

Hemant Kumar

Hemant Kumar (Expert)
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06 October 2012 Form E-1:

This form is to be issued by the selling dealer who makes the first inter-State sale during movement of goods from one state to another to enable his purchaser to claim the benefit of exemption from C.S.T. on the second inter-State sale effected by him during the movement of goods. This form is required to be obtained from the Sales Tax Officer.

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CA AYUSH AGRAWAL

CA AYUSH AGRAWAL (Expert)
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06 October 2012 Dear Sandeep,

Lets Have a Practicle Example.

suppose: X situated in Delhi purchased goods from Y in Punjab .Y booked the material on transport and send GR/RR(goods receipt note issued by transporter) to X. X instead of receiving material from transport himself sold the material to Z in Delhi (same state) by endorsing RR/GR
in the name of Z.Z takes the delivery from the transporter .

In this case sale from Y to X is covered under CST and X to Z is also covered Under CST as sale in transit.

To complete the transaction X will issue C form to Y ,
Y will issue E-1 form to X
Z will issue C form to X

In the above case even X & Z both are situated in Delhi but the sale transaction is covered under "sale in transit" clause of CST act so CST will be applicable and vat is not be charged.

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