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Sale to govt departments

Shivani (Learner) (1881 Points)

25 December 2012

Can Government Departments issue C Forms in case of inter-state sale?

Is Government Department also registered/unregistered dealer for CST purpose?

Thanks

shivaniadream @ gmail.com

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5 Replies

CA Lokesh Pokharna (CA (Ahmedabad Bhilwara Chittorgarh)) (4128 Points)
Replied 25 December 2012

i think govt department need not to issue c forms , ultimately tax collection would go also govt.. but point is that if that govt. department is of state then there will be problem...becuase cst related to central govt..

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Shivani (Learner) (1881 Points)
Replied 25 December 2012

hi lokesh

money collected by CST doesn't go in the pocket of the Central Government, it is retained by the State Government of the selling state. section 9(3)

so does it mean no need to issue C Form by Government Department?

CST rate would differ in case of a registered/unregistered.

my question remains.

pls advise

CA Shree Jain (Chartered Accountant) (1572 Points)
Replied 25 December 2012

Yes Government Department is Issue the C Form .. And please note that Govt Department is always Registered. so no question for unregistered dealer for CST.

Ravishankar K (Accountant) (461 Points)
Replied 25 December 2012

sale means which sale we purchase so many things from market like PC etc interstate sale worth 5-10 lakhs but never issue C form we pay the vat?

What is C form, if we issue it do we need not pay VAT? i am working in govt dept.

shibu (Accountant) (325 Points)
Replied 26 December 2012

Before introduction of VAT, Govt Depts issued Form D when they purchase from outside state.

If CST is collected at 2%, this has to be establised by the dealer with proof from Departments

In the case of intra-state purchase, full amount of VAT is collected.

Introduction of VAT will not make any difference. Whether these departments file their VAT returns or not they have to issue respective forms to the businessman to file their VAT returns.