New procedure of application and issuance of CST e-declarations

The procedure for issuance of statutory declaration/Forms (Form C, Form F, Form H, Form E-I and Form E-II)under central sales tax act 1956 has been changed with effect from 1^St February 2014. Commissioner of sales tax has issued a trade circular No. 4T of 2014 dated 28/01/2014. As per this circular existing procedure of issuing physical statutory declaration/form is going to be abolished and new procedure of issuing the form in PDF format on email is going to come to exist from 1^st February 2014. The new procedure is designed in such a manner that there will be minimum human intervention and most of things will do automatically by MAHAVIKAS system.

Application procedure

The dealer is required to apply in new online application form called as Statement of Requirement (SOR). In new
SOR applicant has to give invoice wise purchase annexure. Three separate annexure has been  prescribed for each
type of form/declaration. Like 1) C Form and F form 2) H Form 3) Form E-I and From E-2.

Applicant is required to download the requisite template of SOR and fill all required details and validate the same and then upload the error free file “rem.txt”.

Email address and mobile number of the applicant dealer is mandatory for purpose of delivering service.

Before application, dealer should confirm that turnover of interstate transaction shown in return is equal to or more than interstate transaction shown in the SOR filed by dealer.

All the SOR uploaded till 6 PM. for any day shall be processed by Central Repository Officer on the next working day. Applicant is allowed to withdraw the application till 6PM on the date of uploading SOR.

No any other document is required to be submitted online or physically along with SOR.

The dealers having half yearly periodicity of filing the return are not allowed to make application on quarterly basis.
Such dealers have an option to change the periodicity of return on quarterly basis in the beginning of the year and then apply the CST declaration on quarterly basis.

Validation Control

The system will check TIN of applicant. Unless the applicant has valid TIN under CST Act application will not be processed.

The 11 digit TIN of selling dealer is also verified by system. However this validation is not applicable for the purchases made from the dealers of the state of Tamil Nadu and Union Territory of Daman.

The dealer whose registration is cancelled can also apply for declaration up to the date of validity of his registration.

The dealers who are identified as “suspicious dealer”, SOR of such dealerare not accepted by system.

System will allow only two applications of the particular period for uploading. But if dealer is required to upload the
third application then permission of Additional CST of concerned location is required.

(For example:  if first application is prepared and uploaded for the period say – April 2014 to June 2014. Dealer observed that some declarations are not applied for that period then he can apply second time. But again dealer found that there are some declarations still pending for above period then system will not accept third application. But dealer has option to take the permission from Additional CST of the concerned location.)

Process after online application

After uploading the application system will verify following thing:-

1.       Whether all returns of earlier period are filed?

2.       Whether turnover of interstate purchases and branch transfer/consignment has been disclosed properly in the return?

3.       Whether applicant dealer has outstanding dues under MVAT, CST or any other allied act administrated by sales tax department or/ and has any return related dues?

4.       Whether applicant dealer has filed all the audit report in form 704 from the period 01/04/2008 till the year whose due date of submission of audit report is over.   This is applicable only for the dealers who are liable to file audit report under section 61 of MVAT Act 2002.

 Verification done by Central Repository Officer

Central Repository officer can verify SOR on random basis. He shall verify following aspects with the help of MAHAVIKAS –

1. In case of Form F – Whether address and TIN / CST registration number of branch outside Maharashtra state are incorporated in the registration record of the applicant.

2. In case of all CST declaration- Whether applicant dealer fulfill the conditions of commodity details of the SOR as available on MAHAVIKAS. Check the sentence, not getting the clear meaning of this.

When application kept on hold? And issuance of defect notice

If any defect is found by Central Repository (CR) officer he will inform the applicant through email. Applicant dealer should rectify the defect within a period of 15 days from the date of receipt of email. If defect is not rectified within a period of 15 days then relevant application (SOR) shall be automatically rejected. The concern officer
will also communicate the dealer regarding the rejection to the applicant dealer. (Is it mandatory on the officer to communicate the dealer regarding the rejection of the application to the applicant?)

If defect have been rectified as per the satisfaction of the CR officer then CR officer shall approve the application.

If application is hold due to short filer of return but as per the opinion of the dealer return is not a short file then dealer can approach the return branch and make the correction in MAHAVIKAS data. After correction; defect will get closed automatically.  But this process should be complete within period of 15 days otherwise application will reject automatically by system.

Procedure of issuance of statutory declaration Forms

The statutory declaration forms will issued electronically through the email of the applicant. Therefore the
applicant should provide correct and authentic email address in the application (SOR). It is expected that dealer will get statutory declaration form on his email in T+1 day.

The new system of electronic issuance of declaration /certificate under CST Act shall come into force from 01/02/2014. All the application up to 31/01/2014 shall be processed by department as per the existing system.

It is advisable to all readers to go through the official circular, attached here for any clarification.

Circular