Key Points

  • C form is a statutory declaration which qualifies the
    assessee to avail concessional rate of Central Sales
    tax (‘CST’)
  • Non-collection of C forms major reason for non
    compliance in the industry

  • Non-compliance a direct hit to bottom line which
    may wipe out profits

  • C forms have to be submitted at the time of filing
    VAT audit reports. This time limit could be extended
    upto completion of VAT assessment

  • Tax implication as high 10.50/ 3 percent of the
    turnover along with interest and penalty

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Course of action

  • Need for automation due to large volume of data
  • ABC analysis to focus on key States, key customers

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