You can record interstate purchase for Haryana at different CST rates against Form C, depending on the transaction scenario. This topic mentions about the scenarios and applicable CST rates to be charged for the interstate purchases.
Interstate purchases have to be taxed at 0% CST rate against Form C when:
● It is transit transaction against Form E2.
● The goods are taxed at 0% under section 8(5) of CST Act read with section 8(4) (against Form C).
To record such purchases, the following enhancements are introduced:
● A new option under Nature of transaction, namely Interstate Purchase Exempt - With Form C is provided.
● The option Is under CST exemption? is provided. After selecting the Form to issue as Form C, you can set this option to:
o Yes, if the goods are taxed at 0% when purchased against Form C.
o No, if the transaction is against Form E1/E2.
In the Form VAT R1 report, the text Subsequent of E1/E2 appears for this nature of transaction.
To record an interstate purchase invoice 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 Party Details screen. This option appears only when the State selected is other than Haryana.
5. Select the purchase ledger predefined with the nature of transaction Interstate Purchase Exempt - With Form C.
6. Select the required stock items.
7. Set the option Provide VAT Details? to Yes. In the Statutory Details screen,
o Enter the purchase details.
o Select C Form as the Form to issue.
o Set the option Is Under CST exemption to Yes/No as required.
o Press Enter to save and return to purchase invoice.
The purchase invoice appears as shown below:
8. Press Enter to save.
To record interstate purchases against Form C
1. Go to Gateway of Tally > Accounting Vouchers > F9: Purchases.
2. Enter Supplier Invoice No. and Date.
3. Select the party ledger in Party's A/c Name option.
4. Set the option Is Against C Form to Yes in Party Details screen. This option appears only when the State selected is other than Haryana.
5. Select a common purchase ledger in which the option Is VAT/CST Applicable is set to Applicable, and Set/Alter VAT Details is disabled.
6. Select Interstate Purchase - Against Form C as the Classification / Nature.
7. Select the required stock items. If the option Is Against C Form is set to Yes in Party Details screen, the tax gets calculated at 2% CST rate irrespective of the tax rates defined in the inventory or accounting masters.
8. Select the common CST ledger.
The ledger must be grouped under Duties & Taxes in which the options:
o Type of Duty/Tax is set to CST.
o Percentage of Calculation is set to ‘0’.
9. Set the option Provide VAT Details to Yes to open Statutory Details screen.
o Enter the required C Form details.
o Press Enter to return to purchase invoice.
The purchase invoice appears as shown below:
10. Press Enter to save.
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