What is C Form & its utility ?

What is C Form & its utility ?

C form is used when a registered dealer (having TIN no.) of one state purchases goods from registered dealer of any other state. C form is used for getting the benefit of concessional rate of CST in inter-state trade.

Example :

M/s A of Maharashtra wants to purchase some commodity from M/s B of Rajasthan. In Rajasthan The rate of Sales tax on that commodity is 12.50%.

Now if A gives B a C-form (which is issued by Sales tax dept of Maharashtra) B will charge 2% CST on its Bill.If A does not give C-form to B the B will charge 12.50% CST on his bill.Thus for getting the benefit of concessional CST rate, C form is compulsory.

C form will not be required if the rate of tax on said commodity in Rajasthan is below 2%, in that case CST will automatically be the lesser amount. There will be no need to submit the C form.