Type search words and press enter
A new GSTR-2B API is applicable from 14th Nov 2024, which affects auto-reconciliation of GSTR-2B for Oct-24. Stay tuned for our upcoming release, TallyPrime 5.1, which supports this and makes reconciliation even smoother.
https://help.tallysolutions.com/docs/te9rel66/Tax_India/VAT/vat_purchases/interstate_pur_exempt_with_form_c.htm

Interstate Purchase Exempt - With Form C (VAT)

You can record interstate purchases against Form C at 0% CST.

Interstate purchases have to be taxed at 0% CST rate against Form C when:

● It is a transit transaction against Form E2.

● The goods are taxed at 0% under section 8(5) of the CST Act, read with section 8(4) (against Form C).

To record such purchases, the Nature of transaction Interstate Purchase Exempt - With Form C is provided for Andhra Pradesh, Assam, Chandigarh, Chhattisgarh, Delhi, Goa, Gujarat, Haryana, Himachal Pradesh, Jharkhand, Karnataka, Madhya Pradesh, Maharashtra, Puducherry, Punjab, Rajasthan, Tamil Nadu, Telangana, Uttarakhand, Uttar Pradesh, and West Bengal.

Note: The option Is under CST exemption? is provided for states enabled to support VAT for Chandigarh, Chhattisgarh, Delhi, Goa, Gujarat, Haryana, Karnataka, Madhya Pradesh, Maharashtra, Puducherry, Punjab, Rajasthan, Uttar Pradesh and West Bengal. After selecting the Form to issue as C Form , you can set this option to:

♦ Yes if the goods are taxed at 0% when purchased against Form C.

♦ No if the transaction is against Form E1/E2.

Record an invoice for exempt interstate purchases against Form C

1. Go to Gateway of Tally > Accounting Vouchers > F9: Purchase .

2. Enter Supplier invoice no. and Date .

3. Select the party ledger in the field Party's A/c Name .

4. Set the option Is Against C Form? to Yes in the Party Details screen. This option appears only when the State selected is other than the State selected in the Company VAT Details screen.

5. Select the purchase ledger predefined with the Nature of transaction set to Interstate Purchase Exempt - With Form C .

6. Select the stock item. Enter the Quantity and Rate .

7. Set the option Provide VAT Details? to Yes . In the Statutory Details screen

● Set the options as shown below:

Note: The options in the above screen appear based on the State selected in the Company VAT Details screen.

● Enter the relevant details.

● Press Ctrl+A to accept.

The purchase invoice appears as shown below:

8. Press Enter to save.

The value of this transaction gets captured in the relevant fields of state-specific VAT/CST forms and annexures.

Mail this article