We are confused about which value to be quoted in E I Form whether taxable turnover or invoice value.
Previously we issued E 1 Form with the invoice value (taxable value + CST tax 2 %) as we have received C Form for those sales from our buyer ( C Form value was taxable value + cst 2%) but for the quarter starts from 01.04.2017 to 30.06.2017, we inadvertently generated without CST 2% in ctd site.
For rectify the issues we approach the help desk they explained through a reply mail that there is no provisions to revise return for E 1 forms, new invoices can be added for the same period but for already generated forms we cannot revise/ edit amend the value in the site.
Again we approach our concerned sales tax authority for this problem. He states that the E 1 forms what we have generated with value as taxable value without tax portion at site is correct and there is no need to revise / amend the forms.
Further he told that we should have issue forms only to the turnover and not to the invoice value because at the time of assessment only taxable value is taken to determine turnover of our company.
We don’t know which value is the correct value to be quoted in E 1 Form.
Could you please advise us whether we can issue E1 form without cst 2% ie taxable value? Or with cst 2% invoice value?
Any rule is concerned with the value to be quoted in E 1 Form, kindly forward the rule.
11 July 2024
In the context of issuing Form E-I under CST (Central Sales Tax), it's important to clarify the correct value to be quoted. Here’s a detailed explanation based on the information provided:
### Understanding Form E-I
Form E-I is used for interstate sales at a concessional rate of CST (Central Sales Tax). When issuing Form E-I, it is crucial to correctly mention the value on which CST is calculated, as this impacts compliance and eligibility for concessional rates.
### Options for Value on Form E-I
1. **Taxable Value**: This is the value on which CST is applicable. It typically excludes any taxes such as CST itself.
2. **Invoice Value**: This includes the total amount charged in the invoice, which may include CST if it's charged separately.
### Correct Approach
Based on the details provided and general practice:
- **Taxable Value**: When issuing Form E-I, you should mention the taxable value. This is the value on which CST is levied, excluding CST itself. It represents the net amount on which the tax is calculated.
- **Invoice Value**: Including CST in the value mentioned on Form E-I is not correct, as CST should not be part of the taxable value itself. CST is a tax levied on the sale, and the taxable value is the base amount on which CST is applied.
### Guidance and Rule
- **Rule**: There is no specific rule under CST that mandates including CST in the value mentioned on Form E-I. Typically, Form E-I should reflect the taxable value (net of CST).
- **Authority Confirmation**: Your sales tax authority has indicated that Form E-I should be issued with the taxable value (without CST). This aligns with standard practice and ensures compliance with CST regulations.
### Conclusion
You should issue Form E-I based on the taxable value (net of CST). This is the correct approach as per the guidance from your sales tax authority and aligns with standard practice. Including CST in the value mentioned on Form E-I could lead to compliance issues during assessments or audits.
Always verify with your tax advisor or local sales tax department for any specific updates or local variations in regulations. This will ensure that your transactions are correctly reported and compliant with CST rules.
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