exemption of CST under sez unit, VAT + CST

[pankaj kanungo]

Self is Indore based Industrial dealer & got order from Unit situated in SEZ ahemdabad.

1. SEZ ahmedabad unit place order to us . We are register under MP sale tax department .

2. We place order to our principal situated at bangalore , Karnataka

3. Now our principal made commercial invoice in our name & mention consignee name as SEZ unit situated at ahmedabad & material directly deliver the SEZ unit .

In such transaction. Since material is directly deliver the sea unit , ahmedabad from our principal works at bangalore .

How we can save cst @ 2% , since SEZ unit have exemption of CST .

Pls. confirm in such case , SEZ unit issue form I directly in the name of our principal , since material is directly moved from principal work to sea unit location.

Presently our principal told us that they will charges CST to us & our customer at SEZ told us they won't pay CST .

The solution is only that of SEZ unit issue form I in the name of our principal . Pls. confirm whether it is possible or not

Posts / Replies

[Ganeshan Kalyani]

Sir, the transaction is akin to Sale in transit. Here to briefly reply, the principal would charge CST@2% and on subsequent billing raised by you on SEZ would not attract tax in lieu of Form I. Since it is not direct sale I doubt avoiding CST. Thanks.