By virtue of section 5 of Central Sales Tax Act, any dealer who is registered with the Sales Tax authorities can claim the exemption from sales tax in respect of his sales made in the course of exports out of the territory of India. The exporter may also buy the goods from dealer / manufacturer for the purpose of export trade without payment of sales tax by issuing Form H (where the selling dealer is in another state) to the selling dealer from whom he purchased goods for export. The basic condition to avail the sales tax exemption is that the exporter should be registered with the sales tax department.
After registration with the Sales tax authorities, the exporter should apply in the prescribed proforma to the concerned sales tax officer for issuing Form H alongwith the prescribed documents. On receipt of the application, the sales tax officer issues Form H to the exporter. After the goods have been exported the exporter will fill in Form H in triplicate. One copy of the Form H will be retained by the exporter and remaining two copies will be given to dealer or manufacturer from whom the exporter has purchased the goods for export.