CST Act, 1956- GST tax payers purchasing HSD etc VAT goods from outside the state on C form condition at 2% rate-certain clarification requested-Regarding - GST - States - CCTs Ref. No.CCW/GST/57/2017

GOVERNMENT OF ANDHRA PRADESH COMMERCIAL TAXES DEPARTMENT CCT's Ref. No.CCW/GST/57/2017, dated 09-08-2017 Ref: 1. Representation of UltraTech Cement Limited dated 04-07-2017 2. The Taxation Laws (Amendment) Act, 2017(No 18 of 2017) published in The Gazette of India dt 5th May, 2017 This is to inform that the Central Sales Tax Act, 1956 (CST Act) is amended vide reference 2nd cited by confining the definition of goods to only six goods viz Motor Spirit (commonly known as Petrol), High Speed Diesel, Aviation Turbine Fuel, Natural Gas, Petroleum Crude and Alcoholic Liquor for Human consumption. As per section 8 of CST Act, the concessional rate of tax (2%) on inter state sales of goods is available, if the buyer furnishes declaration in Form c to the seller. The purchasing dealer can issue declaration forms only for the goods specified in his certificate of registration and for purchasing the goods for the purpose of (i) re-sale by him or (ii) use by him in the manufacture or processing of goods for sale, subject to any rules made by the Central Government in this behalf, for use by him or (iii) in the telecommunications network or (iv) in mining or (v) in generation or distribution of electricity or any other form of power, or (vi) containers or other materials used for the packing of goods for sale; In this regard, representations are received from certain dealers viz M/s Ultra Tech Cement Limited, dealing in Cement for purchasing High Speed Diesel (HSD) from outside the state at concessional rate of tax of 2% by issuing C forms to sellers in other states. The 'C' declaration forms can be issued by a Registered dealer to another registered dealer. After the introduction of GST wef 1-07-2017, the VAT Act is repealed for all the goods except for the six goods mentioned above. Under CST Act also, the registration of the dealers dealing in goods other than the six goods mentioned above also automatically cancelled. Now that the scope of goods has been limited to just petrol, HSD, ATF, natural gas, crude oil, only these items would amount to goods within the meaning of section 8(3) of the CST Act. Hence, as the Act stands now, post amendment, it is not possible to issue C forms in such cases as using these items to manufacture any item/s other than these are not goods anymore within the meaning of the CST Act, as amended. This is for information and necessary action. Chief Commissioner of State Tax