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Unit 12: Central Sales Tax

12.11 Forms for Declarations Notes

A dealer has to issue certain declarations in prescribed forms to buyers/sellers. These forms are
prescribed in Central Sales Tax (registration and turnover) rules, 1957. Out of these forms, forms
c, e-i, e-ii, f and h are printed and supplied by sales tax authorities and are supplied by them.
Dealer has to issue declarations in the forms printed and supplied by the sales tax authorities
only. These forms are in triplicate. [form d was to be issued by government and can be printed/
typed by the government department making purchases. Now form d has been abolished w.e.f.
1-4-2007].

Declaration in Form ‘c’

As per section 8(1)(b) of CST Act, sales tax on inter state sale is 4% or sales tax rate for sale within
the state whichever is lower, if sale is to registered dealer and the goods are covered in the
registration certificate of the purchasing dealer. Otherwise the tax is higher - (10% or tax leviable
on sale of goods inside the state, whichever is higher). If the selling dealer pays CST @ 4% or
lower (if applicable), he has to produce proof to his sales tax assessing authority that the
purchasing dealer is eligible to get these goods at concessional rate. Otherwise, the selling
dealer will be asked to pay balance tax payable plus penalty as applicable. Section 8(4)(a),
therefore, provides that concessional rate is applicable only if purchasing dealer submits a
declaration in prescribed form 'c'.
Authority to issue blank c form - the blank c form has to be obtained by purchasing dealer from
sales tax authority in the state in which goods are delivered, which is usually the place where
purchasing dealer is registered. However, in case on inter state sale by transfer of documents,
the purchasing dealer may not be registered with the sales tax authorities in the state where the
goods are delivered. In such case, he can obtain blank c form from sales tax authority where he
is registered.
C form is mandatory to avail concessional rate - submission of c form is mandatory and unless
c form is submitted, concessional rate of sales tax will not apply. It has been held that this
procedure is designed to prevent fraud and collusion, and facilitate administrative efficiency.
Hence it is mandatory. Concession can be denied if the form is not submitted - kedarnath jute
mfg co.v. Cto - (1965) 3 scr 626 = (1965) 16 stc 607 (sc) = air 1966 sc 12.

State government cannot waive the condition of c/d form - section 8(5) has been amended w.e.f.
11th may 2002 to provide that state government can issue an exemption subject to fulfilment of
requirements of section 8(4). This sub-section requires declaration form registered dealer/
government. Thus, state government cannot waive condition of c/d form.
Number of transactions per 'c' certificate - one declaration in c form can cover all transactions in
one whole financial year, irrespective of total amount/value of transactions during the year.
[rule 12 amended w.e.f. 7-8-1998].
One certificate for each financial year - if a transaction covers more than one financial year,
separate c form is required for each financial year. Provision of one 'c' form per financial year
has been upheld in laxmi agarbatti factory v.uoi (1996) 102 stc 248 (mp hc db).
Procedure in case of loss of c form - if duly completed or blank c form is lost when it was in
custody of purchasing dealer or when the form was in transit to selling dealer, the purchasing
dealer will have to furnish 'indemnity bond' to sales tax authority (from whom the blank forms
were obtained) in prescribed 'g' form. If the duly completed c form is lost after it is received by
selling dealer, he has to submit indemnity bond to sales tax authority of his state.

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