Rate of CST and C Form

Concessional Rate of Tax in case of C Form

If C Form not given, CST charged at local vat rate

If C Form given, CST Charged at

Local Vat rate

Or

2%

Whichever is less

It is a Form given by buyer to seller in case of interstate sales

If buyer and seller are registered

Conditions to be fulfilled for concessional rate of CST: A dealer is liable to pay CST at the concessional rate provided the following conditions are satisfied:-

• Sale is of eligible goods:

Goods described in sub-section (3)* are the goods eligible for concessional rate of CST (refer Note below).

Eligible goods are

• Goods resold
• Goods used in manufacturing
• Goods used in telecommunications
• Goods used in mining
• Goods used in generation or distribution of electricity
• Containers used for packing goods used for sale
• Containers or packing material of all above

• Sale is made to a registered dealer .

• Form C to be furnished by the purchasing dealer:

Hence,C Form cannot be used for purchase of goods for office use