CST Form C: Interstate Sales by Registered Dealers
Form C is a statutory declaration furnished by an eligible purchasing dealer to the selling dealer for a qualifying interstate sale under the Central Sales Tax Act, 1956 (CST Act). It supports the concessional treatment prescribed by Section 8, subject to the law governing the goods, the purchaser's registration and the permitted use.
What is Form C?
Form C is the declaration specified under Section 8(4)(a) of the CST Act read with Rule 12(1) of the Central Sales Tax (Registration and Turnover) Rules, 1957. It is used by the selling dealer to substantiate a claim to the concessional rate under Section 8(1) for qualifying sales to a registered purchasing dealer.
Who issues Form C and who receives it?
- Purchasing dealer: The registered buyer obtains or generates the declaration through the procedure of the relevant state tax authority and furnishes it to the seller.
- Selling dealer: The supplier receives Form C and submits or produces it as required by the assessing authority to support the concessional CST claim.
- Government purchaser: Government purchases are subject to the distinct declaration or certificate mechanism provided in Section 8(4); a government department does not automatically use Form C merely because it is a government buyer. A government department registered as a dealer may use Form C where legally eligible.
Relevant legal provisions
| Provision | Meaning and application |
|---|---|
| Section 3, CST Act | Defines when a sale or purchase takes place in the course of interstate trade or commerce. |
| Section 7 | Provides for registration of dealers under the CST Act. |
| Section 8(1) | Prescribes the concessional CST rate for qualifying interstate sales to registered dealers, subject to the statutory conditions. |
| Section 8(3)(b) | Specifies eligible purposes for which goods may be purchased, subject to the statutory scope and registration certificate. |
| Section 8(4) | Requires the prescribed declaration or certificate for claiming the concession. |
| Rule 12(1), CST (R&T) Rules, 1957 | Prescribes Form C as the declaration for Section 8(4)(a). |
Applicable CST rate and eligible goods
For a qualifying sale under Section 8(1), the CST rate is generally 2%, subject to the current statutory framework and transaction-specific conditions. Without a valid declaration or where the sale does not qualify, the applicable treatment under Section 8(2) must be considered.
Following GST implementation, the CST Act's continuing application is principally relevant to the following goods, as defined by the applicable amendments: petroleum crude, high speed diesel, motor spirit (petrol), natural gas, aviation turbine fuel and alcoholic liquor for human consumption. The exact scope of a Form C concession also depends on Section 8(3), the buyer's registration and the intended use. Not every purchase of these goods automatically qualifies.
Conditions for claiming concession
- The transaction must be an interstate sale within Section 3 and remain subject to CST.
- The purchasing dealer must hold the relevant CST registration and be entitled to purchase the goods under the applicable provisions.
- The goods and intended use must satisfy Section 8(3) and the buyer's registration particulars.
- The selling dealer must obtain the correctly completed Form C declaration in accordance with Rule 12 and applicable state procedures.
- Invoices, transport documents, tax records and declarations should be consistent and retained for assessment.
How to obtain and submit Form C
- Confirm the buyer's CST registration and whether the transaction is eligible.
- Use the state commercial taxes portal or designated authority to request or generate Form C under that state's process.
- Enter the selling dealer's details, invoice particulars, goods and relevant period accurately.
- Provide the authenticated declaration to the selling dealer and retain supporting records.
- The selling dealer should furnish the declaration to its assessing authority within the prescribed time, including any legally permitted extension.
Under Rule 12(7), declarations are generally furnished within three months after the end of the period to which they relate, subject to the rule's provisions and extension for sufficient cause. State filing procedures and the relevant assessment year should also be checked.
Can one Form C cover multiple invoices?
Rule 12 provides for declarations covering transactions within the prescribed period, including the applicable quarterly arrangement. Multiple invoices may be covered where the statutory requirements and state portal process permit. Do not combine unrelated periods or ineligible purchases.
Official legal references
- India Code: Central Sales Tax Act, 1956 (search by Act title)
- Central Board of Indirect Taxes and Customs: GST laws and notifications
- GST Portal: registration and GST compliance information
Frequently asked questions
Is Form C still valid after GST?
Yes, for eligible transactions that continue to fall under the CST Act. It is not a general declaration for GST-covered interstate supplies.
Is the concessional rate available without Form C?
Ordinarily, a dealer claiming the Section 8(1) concession must meet the declaration requirement under Section 8(4). Without the necessary evidence, the claim may be denied.
Does the purchaser or seller issue Form C?
The purchasing dealer furnishes Form C to the selling dealer; the prescribed declaration is obtained or authenticated through the relevant state authority's system.