Traders in Bihar will now be able to procure and fill the statutory C-Form online with state commercial taxes department launching the service on Thursday in the state capital. The C-Form is required to conduct inter-state trade activities in compliance with the statutory norms.

Bihar deputy chief minister Sushil Kumar Modi, who also heads CTD, launched the service. "Most of our services have become online. The most satisfying part of the Bihar's e-governance story in CTD is that we are the first in the eastern region, and also ahead of Uttar Pradesh (UP)," he said.

Now the inter-state traders would be able to download the statutory C-Form from the official website of CTD (www.biharcommercialtax.gov.in) after fulfilling certain criteria online. Those who have an annual tax liability of more than Rs 50,000 can avail the new facility. The number of such traders is estimated around 11,000. "If they conduct inter-state trade using C-Form, then they would have to pay only 2% central sales tax (CST). Otherwise, they would have to pay the existing 10-12% tax rate," the minister said.

In Bihar, traders have already been filing taxes and returns online. The deputy chief minister expects that the service will bring transparency in the system.

The software for the application has been developed by Tata Consultancy Services whose five personnel will be available in the department for the next three months to resolve the initial teething problems.

Bihar Industries Association (BIA) president K P S Kesri and Bihar Chamber of Commerce and Industries president O P Sah were also present at the launch.