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E1 & E2 Transaction - Value Added Tax - VAT-CST

#1 Issue Id: - 3858
Dated: 26-2-2012
By:- Manojit Barman
E1 & E2 Transaction

  • Forum

Dear Seniors,

A is the Material Manufacturer in Jabbalpur CG

B is the Dealer in Noida, UP

C Customor/Consignee Shajanpur, UP

My Question is:

Is the below transaction "Sale In Transit / E1 Transaction" or not ?.

B purchases the material from A under CST biling and B prepare a Invoice without any tax amount to C.

the material A Delivers in the name of B as a buyer & directly send to C and B Endorse the the name of C. so, material collects by C

and A issues "E1" form to B and collects Form"C" from B and B collect Form "C" from C & issues E2 Form to C

Please guide me.

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Posts / Replies


#2 Dated: 27-2-2012

Dear Mr.Burman

The Transaction clearly covers under section 6(2) of the CST Act,1956 ,i.e subsequent sale and required forms are E1 & E2. Please get it confirmed that while raising Invoice by M/s A for such sale, the name of M/s B has been stated as Buyer and the name of M/s C is stated as Consignee and since there is inter state movement the same is covered under the said section.


Aloke Ghosh

#3 Dated: 27-2-2012
By:- vittal Rao


"E1" refers to sales in transit .  i.e., the sale is effect ed to a buyer who has ordered with another buyer, for whom the the material transhipment  us under way.

vittal rao

#4 Dated: 29-2-2012

Dear Mr. Burman,

If Goods destination ends at C-UP then no question of issuing E-II. If the Goods are attracting further movement then the question of E-II comes and B has to issue E-II.

Please correct me if am wrong.

#5 Dated: 1-3-2012
By:- Manojit Barman

Dear All,

Thanks for your reply.

But my question is that how to I will do billing to C. We (B) & C we are in same state. I will put any tax in our invoice or only charge as per our order value (Manufacturer Value + our profit)

Please help my.

Thanks & Regards

M Barman

M: +919958352480

#6 Dated: 9-3-2012

Dear Burman,

You may have to raise Commercial Invoice / Bill in Transit adding Value +  profit, you have to show Actual CST charged by A

#7 Dated: 14-3-2013
By:- Vinay Singh

Dear Mr. Burman

How much amount of C form will be issued by C to B.

A invoice to B for Rs.102/- including CST Rs.2

B Invoiced to C for Rs.120/- including CST Rs.2 as per A invoice.

Now tell me amount of Cst C form to be issued in format 1 or 2 given below

1) Amount Rs. 118/- + CST Rs.2/- = Total Value Rs.120/-

2) Amount Rs. 117.64/- + CST RS.2.36/- = Total Value Rs. 120/-

#8 Dated: 15-3-2013
By:- Bhuwan Joshi

One More question added to question raised by Mr. Vinay Singh.

What will be tax liability on Rs. 18 ( i.e. Rs. 120-102).

Since B & C both are in UP Sale of Rs. 18 to be regarded as Loacal or Central (E1)

Thanks & Regards




#9 Dated: 18-3-2013
By:- Bhuwan Joshi

Dear Expers,

Please reply our query.


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