What is Form C and Why it is required ?
The concept of Form C is very simple. When Goods are moving from one state to another state generally they are either of Resale and/or for use in manufacturing of Goods. When such goods are purchased either for resale or for use in manufacture, State Government collects the tax when goods are resold or when manufacturing goods are ultimately sold. Thus Govt gets that tax on final selling price. In such case when goods are moved from one state to another if full tax is paid by purchaser to Seller.
To avoid this double taxation Form C plays important part. The rate of tax on interstate sales is governed by Central Sales Tax Act (CST) and if the sale is made to a registered dealer ie purchaser of the another state then the rate of tax is 2% but the purchaser have to supply Form C to the seller. The rate of tax without C-form in case of interstate trade or commerce is equal to the rate of tax applicable in the state of the seller. In fact C-form is the proof that the sales is made to a registered dealer of another state.
Online Application For CST Form
Sales Tax Departments different states provide online provision for application of CST Form online.