GSTTaxation

C Form – Procedure of Issuing & C Form Search

Know all the information about ‘C’ form – The procedure of issuing by reading the below-mentioned details.

You need a certificate if you are running any Interstate business. This certificate is known as the C form. There is a lot of noise about what is c form – Procedure of Issuing, and here all details are available. The seller of the goods ideally issues it to the buyer of the goods to affect a reduction in the tax rate. Several business transactions are conducted every day after GST introduction, but this Form is not applicable anymore. Business transactions between various states should be pursued with the given certificate known as the C form. The goods should issue it sales goods buyer. From 1st July 2017 in India, GST was implemented, and under the Goods and Services Tax concept, this Form is no more valid.

The Terms And Conditions Applicable

The C form is issued and restricted for the goods specified for the registration certificate. The commodities bought should be traded or used as raw materials for production. The Form can be used for the procurement of capital goods other than that.

Content Of The Form

The content of Form C is mentioned here:

  • Name of the seller and buyer
  • Name of the issuing state
  • Seal of the issuing authority
  • Validity of the Declaration
  • Buyer and seller’s address
  • Registration number of the buyer and seller
  • Contact details of the buyer and seller
  • Serial form number
  • Details of the commodity procured
  • Name and signature of the authorized signatory
  • Signature status about the specific dealer
  • Time and place

Timeline of the C form Issue

The buyer should issue the C form to the seller every quarter for the goods procured during that quarter. There is no monetary restriction for giving any bill in a specific quarter, and some multiple bills would also have a restriction of 1,00,00,000.

What Happens On The Nonissue Of This Form?

If the C form is not issued, the purchaser would be forced to remit all the taxes at the standard rates and deprive them of any discount. The purchaser will require the remit for penalties and interests apart from the taxes, as it can be recovered post-claiming from the clients. You must know what the c form is before understanding anything else.

Sections of Form C as per CST

 1) – Section 8(1): These are allowed goods that have been defined under the CST Act section 2(d) of 1956. These goods can be sold (which are only applicable for the sale interstate) post levying of the CST at the rate of 2% if the goods are made satisfied as per the below-mentioned conditions in section 8(3):

  2) Condition as per sections 8(3)(b) and 8(3)(c):

  A: Goods need to be classes or classes specified in the registration certificate of the dealer (who is registered) for purchasing these goods.

  B: Goods that are for: 

  • To be re-sold by the dealer
  • Used for manufacturing or even processing purposes of the goods for sale
  • In the case of the network telecommunications
  • In the mining
  • Distribution or generation of power
  • Distribution or generation of electricity 
  • Used for sale for packaging of goods. 

How Can We Search Form C

You must log in to the website and enter all your details on the Form, including the state name, series number, and serial number. If you find it challenging to get going with Form C, then you can connect with the experts who will help you. Form C plays a crucial and if you are running any business, you must have it.

The Controversy Around C Forms

As per the law, all the respondents are supposed to be liable for the ‘C’ Form, which goes in respect of the natural gas purchased by the petitioner from all the Oil companies. It is important to note that the gas purchased from the companies is either distributed or used in the generators at the power plant in different locations.The petitioner will have to pay these companies a certain amount for the wrong refusal of the first respondent. To issue the ‘C’ Forms, the petitioner will have to get entitled to adjust or refund the same amount from the authorities who had collected the excessive tax via the oil companies. In this case, all the concerned authorities will get to process the claim in a span of 12 weeks made by the petitioner in writing. The petitioner will be required to provide the needed forms and documents duly filled. This is the matter which went to the Supreme Court, and there was a question: Should the ‘C’ Form be made accessible to all the assesses post the implementation of GTS? The answer to this question was very affirmative, and the decision favoured the assesses. Supreme Court had upheld the decision of both Haryana and Punjab High Court whether form ‘C’ should get access to assesses or not post the GST. This decision was led by a group bench headed by Justice Ranjan Gogoi, who was very sure that no government should be allowed to poke their nose in such a situation. 

Conclusion

 The primary role of Form C is to be issued by the purchasing dealer to the dealer selling to avail all the benefits of the CST: https://www.cbic.gov.in/htdocs-cbec/gst/Circular%20No.%20163_18_2021_GST.pdf (Concessional rates). The primary objectives of providing these benefits of Form ‘C’ are to negate the effects of higher tax rates and safeguard the consumers’ interests. ‘C’ Form – procedure of issuing today is very important and one can reap the benefits of the same. To get more details on it, you can take the support of professionals like Vakilsearch who have in-depth knowledge about it. 

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