Telangana : c form in case final product is exempt


20 July 2018

Respected All,

Can anyone let me know whether issuing C Form in Telangana is not allow, in case final product manufactured ,is exempt from VAT & CST.

P Lease quote any case law.


P. Venu (Expert)
21 July 2018

The query lacks clarity.

MANOJ (Querist)
23 July 2018

Dear Sir
Final product manufactured by Assessee is exempt from VAT & CST.
Commercial Tax Department argued that government is losing revenue if assessee applies for C Form.
This is because at the time of purchase against C Form assessee pays 2% CST whereas after the same uses in manufacture of Final product , assessee do not pay any tax since it is exempt.
Had assessee purchases the same material from the state it would have paid 14.5% VAT. Thus there is loss of revenue of 12.5%.
Hence , assessee cannot apply C Form.
Is the view of the Department correct

MANOJ (Querist)
23 July 2018

Can anyone please guide

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