There are certain type of forms which has been prescribed under Sales Tax Rules 1957. Form C for making interstate purchase at lower rate, Form F used to transfer goods from one branch to other in different state without making it as sale form E1 and E2 used when interstate sale or purchase which are effected by mere transfer of document of title.Here in this article we are explaining about Form F, Form H and Form I .
F Form / Form ‘F’
The F form is required for stock transfer to branches / consignment agents or vice-versa from one state to another without attracting charge of CST. Submission of F form with complete details of movement of goods is mandatory to prove stock transfer. Otherwise, the transaction will be treated as normal central sale for all purposes of CST Act including for charging CST at applicable rates. In fact F Form is an evidence to prove that the goods are sent out to other states on stock transfer basis and not on sale basis. The Party who received the stock is needed to issue to F form to the Selling Person.
H Form / Form ‘H’
H form under CST is issued when buyers is an exporter and buys the goods for export. If the exporters issued the H form, the selling dealer needs not to charge any CST on the transactions. The selling dealer should collect H form from the Exporter buyers. It is received along with the bill of lading. H form is required to submit in VAT Dept. If H form is not submitting in VAT dept then dept will charge full rate of tax or as case may be applicable.
I Form / Form ‘I’
When selling dealer sells the products to the SEZ units, it is exempt from Vat or Cst and form “I” is issued by the buyers or purchasers. SEZ means special economic zone, companies who are registered under SEZs are exempt to liable to pay any tax. Following example will help you to understand this better.
We are engaged in sales of electronic goods such as computers, televisions and projectors. We have received an order for equipment from a unit located in an SEZ, and have been asked by the unit not to charge VAT on the same. Then sales to SEZ units exempt from VAT.