APPENDIX - 43
Procedure to be followed for reimbursement of Central Sales Tax (CST) on supplies made to Export
Oriented Units (EOUs) and units in Export Processing Zones(EPZ), Electronic Hardware Technology
Park (EHTP) and Software Technology Park (STP) from Domestic Tariff Area (DTA)
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Note: Please see paragraph 9.14 of the Policy and paragraph 9.29 of this Handbook.
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The procedure given hereunder shall be applicable for reimbursement of Central Sales Tax.
2. The Export Oriented Units (EOUs) and units in Export Processing Zones (EPZs), Electronic
Hardware Technology Park (EHTP) and Software Technology Park (STP) will be entitled to
full reimbursement of Central Sales Tax (CST) paid by them on purchases made from the
Domestic Tariff Area (DTA), for production of goods meant for export on the following
terms and conditions:
(i) The supplies from DTA to EOU/EPZ/EHTP/STP units must be utilised by them for production
of goods meant for export and/or utilised for export production and may include raw
material, components, consumables, packing materials, capital goods, spares, material
handling equipment etc. on which CST has been actually paid by the EOU/EPZ/EHTP/STP.
(ii) While dealing with the application for reimbursement of CST, the Development Commissioner
or the designated officer of EHTP/STP shall see, inter alia, that the purchases are
essential for the production of goods meant for export and/or to be utilised for export
production by the units.
3. The procedure to be followed in this regard is indicated hereinafter and shall be
strictly adhered to:
Procedure:
(i) The unit shall present its claim for reimbursement of CST in the prescribed form
(Annexure - I) to the Development Commissioner of the EPZ concerned or the designated
officer of the EHTP/STP.
(ii) As soon as the goods are received by the EOU/EPZ/EHTP/STP unit in its premises it will
be entered in the material receipt register kept for the purpose. The register must
show the details of goods, quantity, the source of purchase and the C Form against which
purchase is made, etc. which will be subject to periodical check by the authorised staff
of the Zone/Customs administration. A Chartered Accountant’s certificate regarding the
verification of the materials receipt register relevant to the claim as at Annexure - II
shall be submitted alongwith the claim,.
(iii) The reimbursement of CST shall be admissible only to those units who get themselves
registered with the Sales Tax authorities in terms of Section 7 of the CST Act, 1956
read with (Registration and Turnover) Rules, 1957 and furnish a photostat copy of the
Registration Certificate issued by the Sales Tax authorities to the Zone office concerned
for keeping it in the relevant file. Separate CST Registration be obtained for EPZ/EOU/
EHTP/STP unit.
(iv) Claims shall be admissible only if payment is made through bank or by Demand Draft.
(v) The claim shall be submitted alongwith the following documents:
a) Chartered Accountant’s Certificate, from CA, meeting the following criteria, certifying
receipt of the goods as shown in Annexure-II in the bonded premises, scrutiny of
original invoice/bill of the supplier and proof of payment against each invoice/bill and
its reconciliation with ‘C’ Form:-
Eligibility criteria for C.A. firms:
(i) In case of units located in the the States of J&K, Orissa, North-Eastern States, Andaman
and Nicobar islands and Lakshadweep, the Chartered Accountant firm should be at least a
Sole Proprietorship firm who should be an FCA and engaged full time with the firm.
(ii) In case of partnership Chartered Accountant firms located in the regions indicated in
(i) above, should have at least two full time partners, one of whom should be an FCA.
(iii) In case of units located in other regions, the partnership Chartered Accountant firms
should have atleast one full time partner, who should be an FCA.
(iv) For the regions indicated in (i) above, the Chartered Accountant firm be located in the
area where the unit is situated otherwise qualification of (iii) shall apply.
b) Photostat copy of C Form issued by the EOU/EPZ/EHTP/STP to the supplier in the DTA with
reference to the counterfoil produced by the unit. The counterfoil of C form will be
returned to the unit after making suitable endorsement like ‘cancelled/CST reimbursed’
duly signed by the authorised officer of the Zone administration and the photostat copy
will be retained by the officer for keeping in respective file.
(vi) The reimbursement will be limited to the payment of CST against C Form only.
(vii) The EOU/EPZ/EHTP/STP shall also intimate the name of the person/persons who are
authorised by them to sign the C Form and furnish three copies of his/their specimen
signature(s) which will be kept in the relevant file of the unit.
(viii) The reimbursement will be made on quarterly basis. No claim for reimbursement will be
normally entertained if not claimed within a period of six months from the completion of
the quarter in which the claim has arisen. In case of procurement of goods against
payment in instalments, the CST reimbursement claim may be made in the quarter in which
the full payment has been effected against the invoice/bill. In exceptional cases, the
Development Commissioner may consider delayed applications after satisfying that the
delay was due to genuine grounds.
(ix) Only one consolidated claim for a quarter will be admitted for reimbursement of CST.No
supplementary claim shall be entertained.
(x) The claim for CST reimbursement for the amount below Rs. 100/- on any single invoice
shall not be entertained.
(xi) The disbursing authority for the claim of reimbursement of CST will be Development
Commissioner/designated officer of EHTP/STP who will make payment to the units. All
claims shall be subjected to post audit.
(xii) The unit shall preserve for three years all the original documents viz. Original invoice
/bill, money receipt/bank statement for random/sample checking and produce the same as
and when called for by the office of the Development Commissioner. Random checking of
5% of the claims of a particular quarter should be done in the next quarter through
generation of computer statements on the basis of serial numbers. The random list will
be generated by the Development Commissioner personally.
ANNEXURE 1 TO APPENDIX 43
Application for claiming reimbursement of Central Sales Tax against ‘C’ Form for the goods
brought into the bonded Premises of the EOU/EPZ/EHTP/STP.
1. Name of the applicant :
2. Full postal address :
3. (a) No. and date of letter of Approval issued under EOU/EPZ/ EHTP/ STP Scheme :
(b) Whether the Letter of Approval is still valid on the date of this application. :
4. Registration No:(With date or issue) issued by S.T. Authorities under CST Act 1956 :
5. Details of the goods brought into units
(a) Name and address of the supplier (including the name of the state where the
supplier is located)
(b) Description of Goods
(c) Quantity
(d) Value
(e) Date of purchases of goods
(f) Date of receipt of goods in the Customs Bonded Premises of the EOU/EPZ unit
(g) Total amount of CST paid against ‘C’ Form(h) Sales Tax Registration No. & date
of the supplier under Section (7) of the Central Sales Tax Act, 1956. :
6. Amount of CST claimed :
Undertaking and Declaration
I./We hereby solemnly undertake/declare that the particulars stated above are true and
correct to the best of my/our knowledge and belief.
No other application for claiming CST has been made or will be made in future against purchase
covered by the application.
(a) The goods for which the claim has been made are meant for production of goods for export
and/or for export production of the EOU/EPZ/EHTP/STP unit and will be utilised only in
our factory and we shall not divert or dispose off the material procured without
obtaining prior permission of the concerned Development Commissioner.
(b) The goods for which the claim has been made have been entered into the stock register
maintained by the unit.
(c) In case the unit is wound up or the unit is allowed to be prematurely debonded, we
undertake to refund the entire CST claimed for our EOU/EPZ unit.
(d) Any information, if found to be incorrect, wrong or misleading, will render/us liable
to rejection of our claim without prejudice to any other action that may be taken against
us in this behalf.
If as a result of scrutiny any excess payment is found to have been made to me/us, the
same may be adjusted against any of the subsequent claims to be made by my/our firm or in
the event no claim is preferred, the amount overpaid will be refunded by me/us to the
extent of the excess amount paid.
Signature.......................
Name in Block Letters...........
Designation.....................
Name of the Applicant...........
Firm............................
ANNEXURE - II
CHARTERED ACCOUNTANT CERTIFICATE
I/We hereby confirm that I/We have examined the prescribed material receipt registers,
books of account and the bank statement in respect of the goods mentioned in the table appended,
and each entry of the application of M/s_______________ for the period-------------------------
------------------- and hereby certify that:
(i) The following documents/records have been furnished by the applicant and have been
examined and verified by me/us, namely material handling registers certified by the zone
administration/Bonding Officer, original invoice/bill, books of accounts and l Bank
statement,
(ii) Relevant registers have been authenticated under my/our seal, signatures. It has been
ensured that the information furnished is true and correct in all respects, no part is
false or misleading and no relevant information has been concealed or withheld.
(iii) The Payment has been made by the said M/s.___________________________ to the DTA
suppliers in respect of goods received against the original invoice bill(s) as indicated
in the table annexed hereto.
(iv) The payments have been made by cheque/draft and have been credited to the accounts of the
DTA suppliers.
(v) Such payment include the amount of CST indicated in the respective invoices.
Neither I/We nor any of our partners is a partner/Director or an employee of the above named
entity or its associated concerns.
I fully understand that any submission made in this certificate if proved incorrect or false,
will render me/us liable to face any penal action or other consequences as may be prescribed in
the law or otherwise warranted.
Signature & Stamp/seal of the Signatory___________
Name_______________________________________
Membership No.______________________________
Full address__________________________________
Name and address of the Institution where registered.
Date:..................
Place:.................
TABLE
DETAILS OF GOODS BROUGHT INTO UNIT AND CENTRAL SALES TAX PAID DURING THE
QUARTER__________________________________
(i) S.No. :
(ii) Name and address of the supplier :
(iii) Nature and description of goods :
(iv) Quantity :
(v) Value :
(vi) Invoice/Bill No. and date :
(vii) Date of Receipt of the goods :
(viii) CST Amount paid :
(ix) ‘C ‘Form No. :
(x) Cheque No. and date :
(xi) Name of Bank :
(xii) Bank reference No. :
(xiii) CST Registration No. of the supplier :
(xiv) CST Registration No. of the EOU/EPZ/EHTP/STP unit :
Signature & Stamp/seal of the Signatory________________
Name____________________________________________
Membership No.___________________________________
Full address_______________________________________
Name and address of the Institution where registered.
Date:
Place: