Central Sales Tax Forms / Form E-I

CST Form E-I for Subsequent Interstate Sales During Movement of Goods

Form E-I is a certificate used to substantiate a qualifying subsequent sale of goods while they are moving from one State to another. It is relevant to the exemption mechanism in Section 6(2) of the Central Sales Tax Act, 1956.

Updated: 9 October 2026

Current applicability: GST generally governs interstate supplies of goods. CST and its declaration forms remain relevant primarily to goods outside GST, including specified petroleum products and alcoholic liquor for human consumption, subject to the applicable law. Form E-I is not a substitute for a GST invoice, e-way bill or other GST compliance.

What is Form E-I?

Form E-I is the prescribed certificate for an initial subsequent sale in a chain of sales made by transfer of documents of title while goods remain in interstate transit. It is generally issued by the first interstate seller to the first purchaser, who subsequently sells the goods during that movement. The certificate supports the subsequent seller's claim for exemption, together with the applicable purchaser declaration and other evidence.

The first seller's sale and the later sale are distinct transactions. An E-I certificate does not automatically exempt the original sale or every transaction in the chain.

Legal provisions governing Form E-I

Provision	Meaning and relevance
Section 3(a), CST Act	An interstate sale includes a sale that occasions movement of goods from one State to another.
Section 3(b), CST Act	An interstate sale also includes a sale effected by transferring documents of title while the goods move between States.
Section 6(2), CST Act	Provides a conditional exemption for a qualifying subsequent sale effected by transfer of documents of title during interstate movement.
Section 8(3) and Section 8(4), CST Act	Address eligible goods and the declaration requirements relevant to registered-dealer transactions.
Rule 12(4), Central Sales Tax (Registration and Turnover) Rules, 1957	Prescribes certificates in Form E-I or E-II for purposes of the Section 6(2) exemption.

Who issues and receives Form E-I?

Issuing dealer: Generally, the first seller who effects the original interstate sale and provides the prescribed certificate to the purchasing dealer.
Recipient dealer: The first purchaser who resells the goods during their interstate movement and seeks the exemption for that subsequent sale.
Further resales: Form E-II may be relevant to later stages of a qualifying chain.

The parties' precise roles should be determined from invoices, the transport record and the transfer of title documents, not merely from the labels used in commercial paperwork.

Conditions for exemption under Section 6(2)

The goods must be moving from one State to another pursuant to an interstate sale or a qualifying transfer of documents of title.
The subsequent sale must take place during that movement and be effected by transfer of documents of title to the goods.
The subsequent buyer must be a registered dealer, and the goods must meet the statutory description and use requirements.
The selling dealer claiming exemption must furnish the prescribed E-I or E-II certificate, as appropriate, and the required Form C declaration, subject to any statutory exception.
The documents must be furnished to the prescribed authority within the applicable time or an extension permitted by that authority.

Under the explanation to Section 3, movement for this purpose generally begins when goods are delivered to a carrier or other bailee for transmission and ends when delivery is taken from that carrier or bailee.

Example of an E-I transaction

Dealer A in State X sells eligible goods to registered Dealer B in State Y and dispatches the goods. While the goods are still in transit, Dealer B transfers the documents of title to registered Dealer C. Subject to the statutory conditions, Dealer B may claim the Section 6(2) exemption using the E-I certificate obtained from Dealer A and the applicable Form C declaration from Dealer C. The original sale by Dealer A is separately assessed under the relevant CST provisions.

Documents to retain

Original and subsequent sale invoices, purchase orders and contracts.
Consignment note, railway receipt, lorry receipt or other transport documents.
Evidence of endorsement or transfer of documents of title during movement.
Correctly completed Form E-I, and Form C where required.
Dealer registration details, delivery records and payment evidence.

Actual forms, filing procedures and permissible electronic submission depend on the relevant State tax authority and the assessment period.

Form E-I versus Form E-II

Form E-I ordinarily relates to the first sale in the interstate chain that supplies the certificate for the first subsequent seller. Form E-II is used for subsequent links in the chain where another dealer resells the goods while they remain in movement. Both certificates are prescribed under Rule 12(4); neither alone proves that the sale qualifies for exemption.

Official legislation and form resources

Frequently asked questions

Is Form E-I needed for every interstate sale?

No. It is relevant to a qualifying subsequent sale during transit under Section 6(2), not to every interstate sale.

Does Form E-I replace Form C?

No. Where Section 6(2) requires a purchaser's declaration, Form C is separately required unless a statutory exception applies.

Can a sale after delivery qualify?

Ordinarily not under this provision. The subsequent sale must be effected by transfer of documents of title during the interstate movement of goods.

Is Form E-I generally used for GST-covered supplies?

No. Interstate supplies covered by GST follow IGST and associated GST documentation rules.

This article is general information. Check the current statutory text, notifications and the relevant State's administrative requirements before claiming an exemption.