Maharashtra Government modifies the provisions for Issuance of Form I under Central Sales Tax Act, 1956

Oct 15, 2018 | by Avantis RegTech Legal Research Team


The Government of Maharashtra on October 11, 2018 has issued direction that all the Sales Tax authorities undertaking   assessments, appeals, or, asthecase may be, review, are hereby directed not to disallow the claims made undersection 8 which specifies the rates of tax on sales in the course of inter-state trade or commerce Sub-section (6) of the CST Actmerely on the ground that the declarations in Form I are issued by Sales Tax/Commercial Tax authorities of other States.

As per the provisions of section 8(4) the CST Act with effect from the 10th September 2004, the declaration in Form I was to beobtained  from  specified  authority  of the Central Government  i.e. Commissioner of Special Economic Zone (SEZ). Accordingly a Trade Circular 8T of 2005 dated March 9, 2005, was issued and the Trade was made aware about the amended provisions of theCST Act. It was specifically stated that the declaration in Form I obtained from the Development Commissioner of the SEZ would only be treated as valid declarations.

 

However, the Trade from time to time hasraised the difficulty that in other State(s) the declaration in Form-I was still being issued by the Sales Tax/ CommercialTax Department. In view of these difficulties faced by the Trade a Circularwas issued on June 20, 2009 and it was stated that the issue withregards to acceptance of declaration in Form-l issued by the Sales/Commercial Tax Department will be re-viewed/examined after oneyear i.e. on or before June 19, 2011.

In the light of the Circular instructions contained in the Circulars, during assessment proceedings, the declaration in Form-I, are rejected by Sales Tax authorities in Maharashtra, being invalid as same are not issued by the prescribed authority i.e. Development Commissioner of SEZ.

 

On this background, the Trade has represented the difficulties facedas above. The issue has been examined. Therefore, considering the genuine difficulty faced by the Trade in this respect, the instructions contained in Trade Circular No. 19T of 2009 dated 20th June 2009, are being modified. All the Sales Tax authorities undertaking assessments, appeals, or, as the case may be, review, are hereby directed not to disallow the claims made under section 8(6) of the CST Act, merely on the ground that the declarations in Form I are issued by Sales Tax/Commercial Tax authorities of other States.

The concession accorded under the Trade Circular shall remain in force till one year from the date of issuance of the Trade Circular.

[Trade Circular No. 27T of 2018]

 

URL:https://mahagst.gov.in/sites/default/files/trade-circular/27%20T%20of%202018_2.pdf


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