Issue of c form invoice date? or material receipt date issue

There is a lot of confusion regarding the issue of Form "C" whether on Invoice date of material receipt date especially from Issuing Companies.

The Seller often asks for C form based on the Invoice date and many customers are debating that since the material is received by them in next quarter or especially in case of year end transactions wherein the material is received by the Customer in different financial year say in April end etc. In such case they are not ready to issue form c in previous financial year. Despite of insisting that the Invoice date is the criteria for issue of form "c" .they say that it will be issued only in next financial year. i.e.material receipt month.

Kindly advise especially year end transaction issue.


Is there any case law?






       Mr. Prashant,

       This is a debatable issue. I am also trying to find out a solution in order to follow a  procedure in this case. It is my considered view that C form should be issued on the date of Invoice of  the supplier on the following reasons:-

1.      Sec 2(b) of the CST Act, 1956 defines a dealer means any person who carries on (whether regularly or otherwise) the business of buying, selling, supplying or distributing goods, directly or indirectly for cash, or for deferred payment, or for commissions, remuneration or other valuable consideration, Sec. 2(d) defines goods, Sec.2 (g) of the said Act defines sale, and Sec. 3 defines Interstate sale or purchase.  According to Sec.6 (1), a dealer is liable to pay tax on sale of goods in the course of Interstate trade or commerce. So seller of goods is liable to pay tax on interstate transaction. Sec. 8 (1) prescribes lower rate of tax. The liability to pay tax is on the dealer who sells the goods. A registered dealer can collect tax according to CST Act & Rules made there under. It is not necessary to collect tax but he is liable to pay tax under the Act in which State he is registered.

2.      If the sale is to a registered dealer the rate of tax is 2% against C form or rate applicable on such goods inside the State from where the goods are sold, whichever is lower.  According to Sec.8 (4) (a), a purchasing dealer is entitled to get concessional rate of tax at 2%, if he submits C form declaration to the selling dealer as prescribed in the Act and Rules framed there under. As stated earlier, selling dealer is liable to pay tax on interstate sale in the State of origin of the goods available for movement. If the purchasing dealer is not providing C form declaration to the seller, full rate of tax due on the sale turnover is liable to pay by the selling dealer in the appropriate State. It was held in Commercial Tax Officer Vs. Kowin Conductors (1998) 110 STC 472 that in the absence of C form declaration full rate of tax is payable.

3.      Now all the CST statutory declaration forms can be down loaded from the web site of Commercial taxes department of each State. In Kerala, every dealer is liable to upload his purchase details of each month including interstate transactions in his monthly return and he can generate the C form from the web site. Now C form shall be issued in quarterly basis and no pre-printed forms are available..

4.      It is my considered view from the above discussions that a purchasing dealer who is required to avail concessional rate of tax @ 2%, he should issue C form to the seller based on his invoice in order to limit his tax liability in the State of origin. If the purchasing dealer is not providing C form as stated in CST Rule 12(1) specifying the particulars of bill or cash memo or challan such as date, Number and amount, there is every chance to reject the C form by the assessing authority of the seller. In such circumstances, the seller is liable to pay higher rate of tax, interest and penalty. It will create unnecessary litigation between the purchaser and seller. It is most important to note that seller is granting the concessional rate and he is liable to pay tax in the absence of proper C forms. In order to maintain better business relationship, the purchasing dealer is liable to issue the C form on the invoice date. It may kindly note that issue date of the C form is immaterial in this case.


AVP - Finance


Your note is well written and do post these kind statements for our reference.



Thanks, In order to develop an attitude of such a kind, it is hgihly necessary such a mind to appreiciate others for efferts taken by him for others.  Ask your doubts for discussion and allow me also to respond


dear sir


please  guide me some material issued to march 1st week and send the material april last week  we issued the form c which qtr and how to reconcile interstate sales which year

shirish bajpai


In order to provide proper reply, the question should be self explanatory, other wise misunderstanding will cause danger or harmfull in tax cases. This is a public forum  required seriousness. Please explain  your doubt properly. 


Sir, I have purchase the goods on 28th June 2013 from Delhi, the invoice reached home through courier after 3 days, applied for form C  on 3rd July 2013 and recieived form C from the authority on 5th July 2013. Send the Form C to Delhi for transportation, the material was received at my location ( Agartala) on 25th July 2013. Now under which quaterly should I apply.....pls suggest


If the purchase invoice date is 28-06-13, C form should be provided including the purchases in April-June quarter. Please refer my post in this forum.


If there is two different suppliers, from where the goods are purchased, then how many form c is required. Can i covered no. of transactions for two different  suppliers under one C form ? or i have to use seperate c form for seperate suppliers 


 In order to get concessional rate of tax @ 2% on an interstate purchase from a dealer, you should provide such declaration form to the seller at least on quarterly basis only to avoid difficulties in preparing the same between two regular dealers.  If the seller is insisting C form for each transaction, the purchaser should provide the same to avail reduced rate of tax on interstate purchase.How it is possible to issue one C form to different suppliers.





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