In a memorandum submitted to the Finance Minister P Chidambaram the AITAF President M K Gandhi suggested that the existing VAT procedures be applied in case of CST especially in matters relating to submission of statutory forms.

Documentary proof

While commending Chidambaram  for overhauling the CST system  and bringing about the highly desired ‘uniformity’, the AITAF Chief made a strong plea for doing away with the C-Form and other statutory forms and bring in the system of invoices as is prevalent in VAT. Gandhi suggested that invoices issued should be taken as sufficient documentary proof about the transaction having taken place and the concessions available in the given circumstances be automatically be granted without demanding any of the statutory form.

He said the receipt of statutory forms from the government department is cumbersome  resulting in the levy of Central Sales Tax at higher rate than what is legitimately due at concessional rate from the selling dealer. “Huge paperwork involved not only causes inconvenience to the trading community but also leads to corruption,” he said.